China views artificial intelligence as a strategic technology that could reshape science and industry, placing AI at the center of its competition with the United States.

The United States retains key advantages in frontier models, advanced semiconductors, private investment, cloud infrastructure and developer ecosystems.

The investment gap is stark: major U.S. technology companies spent more than $400 billion on capital expenditures in 2025, compared with $63 billion in China.

In April 2025, Xi Jinping called for greater technological self-reliance and practical AI development, including improving domestic models through their use in manufacturing and government administration.