China plans 2 trillion yuan nationwide AI buildout

China is drafting a five-year plan to spend approximately $295 billion on a network of interconnected computing hubs to advance its domestic AI capabilities. The strategy prioritizes local suppliers like Huawei over foreign chipmakers while leveraging state firms to manage the infrastructure.

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China is drafting a 2 trillion yuan ($295.43 billion) plan to build a national network of data centers over the next five years. The initiative aims to challenge the United States in the accelerating race for artificial intelligence dominance. This infrastructure spend targets 80% domestic hardware use, potentially locking global chip leaders out of the world’s second-largest economy.

### Beijing’s Blueprint for AI Infrastructure The National Development and Reform Commission is coordinating a blueprint to link computing hubs across the country, people familiar with the matter said. This policy framework outlines aggressive AI adoption across the economy, focusing on quantum computing and humanoid robots. State-owned firms will lead the physical buildout and connectivity of these facilities.

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