China's bold 398 billion yuan leap in tech arms race
China is taking a significant stance in the race for technological superiority, where it competes with the United States. It plans to invest heavily in developing AI, robotics, and 6G networks, increasing its science budget by 10% yearly to reach 398 billion yuan. The South China Morning Post reports that this move could alter the global power balance.
According to The South China Morning Post (SCMP), Beijing has accelerated the "technological arms race" by increasing science funding by 10% for the second year. In 2025, approximately 398 billion yuan (around 72 billion CAD) will be allocated for this purpose. These figures are outlined in Wednesday's Chinese Ministry of Finance budget proposal. The funding under the "science" category includes advancements in artificial intelligence, humanoid robots, and 6G networks.
SCMP reports that the integration of these technologies has the potential to alter the global balance of power.
China heavily invests in science
The English-language newspaper based in Hong Kong highlights that this indicates Beijing's aim for dominance in future technologies. This is part of a strategy to help China succeed in the competition with the United States and reshape the global technological power landscape.
This approach includes attracting global talent and systematically investing in future technologies. The increase in science funding in China is the highest among all categories of government expenses—exceeding diplomacy, public safety, education, and even defense.
According to China's Ministry of Finance, the money will be channelled into research and strategic science and technology initiatives.
The US and China in a new "arms race"
At the end of January, the Bank of China introduced an "Action Plan to Support the Development of the Artificial Intelligence Industry Chain." Over the next five years, at least 1 trillion yuan (approximately 180 billion CAD) will be dedicated to providing financial backing to AI-related entities. This will benefit technology sector leaders, including Huawei, Tencent, Baidu, iFlytek, and key governmental and research institutions.
Piotr Sankowski from the University of Warsaw highlighted that this is a "new arms race" between China and the United States within the AI industry. "The Chinese plan was unveiled shortly after the USA announced 500 billion USD for the Stargate Project. It looks like a new arms race... in which the EU's contributions to AI seem minor, given their 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, new artificial intelligence infrastructure will be developed for OpenAI, the US AI leader, over the next four years, with an investment of 500 billion.
