China boosts tech budget to rival US in global race
China is taking a new position in the race for technological dominance, competing with the USA. It is set to spend enormous amounts of money on the development of AI, robotics, and 6G networks, increasing its science budget by 10% year over year to reach 398 billion yuan. The South China Morning Post writes that this strategy could change the global balance of power.
The South China Morning Post (SCMP) reports that Beijing has intensified the "technological arms race," increasing science funding by 10% for the second consecutive year. By 2025, 398 billion yuan (54 billion USD) will be allocated. These figures are outlined in the Chinese Ministry of Finance's budget proposal, presented on Wednesday. Under the category of "science," the funding is directed toward advancements in artificial intelligence, humanoid robots, and 6G networks.
SCMP reports that the integration of these technologies has the potential to reshape the global balance of power.
China heavily invests in science
The English-language newspaper based in Hong Kong emphasizes that this is a clear signal that Beijing aims to dominate future technologies. This is part of a strategy to help China win the competition with the United States and transform the global technological power balance.
This strategy includes attracting global talent and systematically investing in future technologies. China's increase in science expenditures is the largest among all categories of government spending, surpassing diplomacy, public safety, education, and defense.
As explained by China's Ministry of Finance, the funds will be used for research and strategic science and technology ventures.
The US and China participate in a new "arms race"
At the end of January, the Bank of China presented an "Action Plan to Support the Development of the Artificial Intelligence Industry Chain." Over the next five years, at least 1 trillion yuan (about 130 billion USD) will be allocated to provide financial support to AI-related entities. This will benefit technology sector leaders, including Huawei, Tencent, Baidu, and iFlytek, as well as key governmental and research institutions.
Piotr Sankowski from the University of Warsaw emphasized that this is a "new arms race" between China and the USA in the AI industry. "The Chinese plan was announced right after the USA unveiled its 500 billion USD Stargate Project. It sounds like a new arms race... in which the EU's contributions to AI seem negligible, considering the recently announced plan to spend 1.5 billion euros on AI factories," Sankowski wrote on the X platform.
As part of the American Stargate Project, over the next four years, a new artificial intelligence infrastructure will be created for OpenAI, the leader in this technology in the USA, with an investment of 500 billion USD.
