Caixin

Commentary: Why Beijing Is Playing It Safe With AI in Its New Five-Year Plan

Published: Mar. 31, 2026  11:00 a.m.  GMT+8
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Photo: IC Photo
Photo: IC Photo

At first glance, China’s artificial intelligence sector is a roaring success. As of March 10, Chinese developers are behind seven of the world’s 28 smartest large language models, according to the Artificial Analysis Intelligence Index. Second only to the U.S., Chinese tech firms have seized global market share by leveraging lower costs and open-source strategies. Yet, reading through Beijing’s newly unveiled 15th Five-Year Plan, one finds a curious disconnect: the central government’s tone on AI is remarkably subdued.

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  • China ranks second globally in top large language models but downplays AI in its 15th Five-Year Plan, focusing more on digital economy integration than foundational AI advances.
  • The government is cautious due to potential labor market disruptions; 42% of Chinese undergraduates major in STEM and are highly exposed to AI-driven automation.
  • State funding prioritizes applied industrial automation instead of cutting-edge AI research, forcing Chinese AI firms to pursue cost-effective, revenue-focused strategies.
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Who’s Who
Anthropic
Anthropic, a prominent U.S. AI firm, has conducted research indicating that entry-level STEM and corporate management roles are highly susceptible to AI automation. This finding is particularly significant given China's large number of undergraduates, especially those majoring in STEM fields, and the potential societal impact of widespread AI-induced unemployment.
Credit Suisse
Credit Suisse is mentioned as the employer of Chen Changhua, who is identified as the Head of China Equity Research and a columnist for Caixin. He is the author of the article.
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