Commentary: China’s ‘AI+’ Action Plan Aims for a Smart Economy

The State Council of China has issued a comprehensive document outlining the “AI+” national strategy, which details the requirements, development goals, and key action areas for the country’s AI development through 2035. The strategy is structured around six core actions: “AI+” in science and technology, industrial development, consumption upgrades, public welfare, governance capabilities, and global cooperation[para. 1]. The document sets out a three-stage development plan with clear milestones: widespread AI application within two years, the smart economy becoming a leading growth driver in five years, and achieving an advanced smart economy and society by 2035[para. 2][para. 6][para. 7][para. 8]. These stages are collectively referred to as the “AI 2035” development plan[para. 9].

The science and technology component emphasizes both “0 to 1” fundamental scientific breakthroughs and “1 to N” iterative innovations. To facilitate disruptive discoveries, the document calls for new AI-driven research paradigms, high-quality shared datasets, and the intelligent upgrading of research platforms. For practical technology transformation, it stresses the importance of linking research with industry and continuous updating of applications. The philosophy and social sciences aspect aims to build a framework for “AI for good” and encourage human-AI collaboration and ethical research[para. 12][para. 13][para. 14][para. 15].

The industrial development plan highlights the concept of intelligent native industries, which are entirely new sectors enabled by AI technologies. The strategy encourages both the transformation of traditional businesses with AI and the creation of new enterprises with AI at their core, fostering innovative business models and new industry standards[para. 16][para. 17][para. 18]. The effect of “AI+” varies across industries: in manufacturing, it enhances efficiency by systematizing the entire production chain; in agriculture, it accelerates the adoption of smart equipment and data-driven farming; and in services, it supports emerging delivery models to address societal needs such as population aging and employment[para. 19][para. 20][para. 21][para. 22].

On the consumption front, “AI+” aims to shift demand toward experiential, personalized, and emotionally-rich products and services. It seeks to create a feedback loop of discerning demand and precise supply, powered by AI-driven insights and product innovation. Transaction data show explosive growth in AI-related product purchases, especially smart home devices and appliances, with regions like Guangdong, Beijing, and Jiangsu leading in adoption[para. 23][para. 24][para. 25][para. 26].

For public welfare, the strategy targets transformative changes in work and education. In the workplace, AI is to be used for both labor replacement in high-risk jobs and upskilling for dynamic job markets. In education, a dual focus is placed on integrating AI into teaching and enabling citizens to master AI technologies[para. 27][para. 28][para. 29].

Governance measures are addressed with a proposal for a system that encompasses natural persons, digital persons, and intelligent robots. This aims to reduce risks such as privacy violation, ethical concerns, and liability ambiguity, while increasing social acceptance and providing reference points for global AI governance standards[para. 30][para. 31][para. 32]. Open source and accessibility are identified as crucial for technological democratization, fostering inclusive growth, and strengthening international rule-making power[para. 33][para. 34][para. 35][para. 36][para. 37].

Other key measures include promoting the opening of large AI models to enhance industry competition and innovation, incentivizing high-quality data supply through cost compensation and revenue sharing, planning for coordinated resource allocation in data, computing, electricity, and networks (with notable increases in data center electricity usage and investments in AI computing infrastructure in cities like Shanghai and Beijing)[para. 38][para. 39][para. 40][para. 41][para. 42]. Sector-wide AI application pilots, support for intellectual property protection, and the cultivation of home-grown AI talent are considered essential. Notably, China faces an AI talent shortage of over 5 million, with efforts underway to boost supply through educational reform and targeted policy support[para. 43][para. 44][para. 45][para. 46][para. 47].

Finally, the strategy emphasizes risk management—that AI systems are fundamentally statistical, prone to algorithmic black boxes, hallucinations, and discriminatory practices. Clear policies are proposed to promote transparency, accountability, and risk assessment as China advances toward its AI-powered future[para. 48][para. 49][para. 50][para. 51][para. 52].