Shenzhen targets AI in every household as US tech rivalry heats up

Shenzhen's local government has announced plans to embed AI across society in its latest five-year blueprint, aiming to bring the technology into every household. The initiative covers 2026 to 2030 and seeks to position the city as one of the world's most technologically advanced by 2035. Analysts view it as a vital testing ground for Beijing's national AI strategy amid intensifying US-China tech competition.

The Communist Party's Shenzhen municipal committee issued a policy paper on Monday outlining the city's 15th five-year plan, a socio-economic blueprint for 2026 to 2030. The document details Shenzhen's ambition to become one of the world's most technologically advanced cities by 2035, serving as a model for how megacities can support China's broader development goals.

"The goal is for AI to reach every household while empowering all walks of life and industries," states the paper, which calls for an "AI+" strategy spanning public services and commercial applications.

Analysts say Shenzhen will serve as a critical testing ground for Beijing's national AI strategy, as the cutting-edge technology opens a new front in US-China competition. Dai Mingjie, a senior researcher at the South China University of Technology's Institute of Public Policy, argues that the city's plans for the next five to 10 years hold nationwide significance.

"Shenzhen’s AI policy statement is a detailed implementation plan of national goals and signals a shift from focusing on pure tech advancement and supremacy, where the US still dominates, to a much broader spectrum, including manufacturing, varied applications and commercialisation, where China commands a clear advantage," Dai said.

This initiative underscores China's ambitions in AI, particularly seeking leadership beyond areas where the US holds dominance in core technologies.

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Chinese minister announces China's AI sector exceeding $165 billion at National People's Congress, with futuristic AI graphics on display.
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China's AI sector tops $165 billion in 2025, minister says

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The output of China's core artificial intelligence industry exceeded 1.2 trillion yuan ($165 billion) in 2025, with more than 6,200 companies operating in the field, said Li Lecheng, head of the Ministry of Industry and Information Technology. The remarks came after the opening meeting of the fourth session of the 14th National People's Congress in Beijing on Thursday.

In 2025, artificial intelligence is quietly transforming daily life in China, from smart homes to wearable devices and voice shopping. Executives from JD.com and Alibaba highlight surging consumer demand, with AI features now essential for many products. Experts view this as smart living moving from concept to mainstream adoption.

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China's vice minister of industry and information technology, Zhang Yunming, said at a January 22 press conference that the number of AI firms exceeded 6000 in 2025, with the core industry expected to surpass 1.2 trillion yuan. The sector highlighted how advanced manufacturing and AI-driven industries provided strong momentum for growth, boosting manufacturing value added by 5.9%.

Shenzhen-based EngineAI is leveraging Hong Kong as a springboard for global expansion, planning a local listing this year while using its computing power to enter the North American market. The company's robots have been bought by Mideast firms and require cloud-based computing accessible from anywhere.

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Analysts suggest China’s rapid AI adoption may limit the economic fallout from its rapidly ageing population. As fertility rates fall across Asia, sustaining growth with fewer workers poses a daunting challenge. The region’s deep semiconductor, tech hardware, and machinery ecosystems enable faster and cheaper deployment than other regions.

Tesla is redirecting resources away from expanding car model variants in China to bolster investments in artificial intelligence, robotics, and energy systems starting in 2026. Global Vice President Tao Lin announced that the company's capital spending will surpass $20 billion globally, with significant focus on China. This shift positions Tesla as a broader technology firm beyond electric vehicles.

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Premier Li Qiang delivered the government work report to China's National People's Congress on March 5, 2026, setting a 2026 GDP growth target of 4.5-5% and outlining priorities for the 15th Five-Year Plan (2026-2030), including technological innovation, economic security, public well-being, energy production and decarbonisation. The report announced 20 growth targets across economy, technology, healthcare and more, plus 109 major projects in six areas—up from 102 previously—to support doubling 2020 per capita GDP by 2035.

 

 

 

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