US-China AI rivalry pushes China's tech industry toward self-reliance

Chinese President Xi Jinping and US President Donald Trump are meeting in Washington on Thursday, with artificial intelligence expected to be a major topic of discussion. The two countries have agreed to an "AI hotline" to warn each other about dangerous or uncontrolled AI systems. US restrictions on China's access to advanced technology have pushed Beijing to invest more heavily in domestic chips, research, and supply chains. China's 15th Five-Year Plan for 2026-2030 places technological self-reliance at the center of its economic strategy, with government support, private investment, and scientific talent building major tech companies. China spent over 3.9 trillion yuan on research in 2025, and is using capital, talent, and international academic cooperation to expand its technology industry. At least 85 world-class researchers moved to China between early 2024 and late 2025, and over 57% of top AI talent in 2025 had degrees from Chinese institutions.