China’s New Five-Year Plan Prioritises Tech Self-Reliance Amid U.S. Rivalry
As China approaches the launch of its 15th Five-Year Plan (2026–2030), the message from Beijing is unmistakable technological self-reliance has become the defining pillar of national strategy. Amid intensifying geopolitical and economic rivalry with the United States, the new blueprint reaffirms China’s determination to reduce dependence on foreign technology and strengthen its domestic innovation ecosystem.
The State Council and the National Development and Reform Commission (NDRC) have signaled that this plan will put science, AI, and semiconductors at the heart of growth, positioning China not just as a manufacturing hub but as a technology powerhouse. Reuters reports that Beijing aims to spend heavily on next-generation infrastructure, from AI chips to clean tech, while tightening its control over sensitive data and strategic supply chains.
China’s Strategic Shift Toward Technological Autonomy
Over the past decade, China’s industrial advancement has been shaped by programs like “Made in China 2025” and “Internet Plus”, which encouraged domestic innovation. But the upcoming Five-Year Plan marks a deeper and more defensive phase one that integrates national security, data governance, and industrial resilience.
Policy drafts reviewed by economic planners emphasize that China will replace imported technologies with homegrown alternatives in key sectors such as semiconductors, robotics, aerospace, and AI infrastructure. This mirrors the lessons Beijing drew from the U.S. export bans on advanced chips and equipment, which disrupted supply chains but also spurred domestic R&D.
In particular, the Ministry of Industry and Information Technology (MIIT) has outlined new subsidies for chip foundries and AI startups, with billions allocated to “national champions” like SMIC, Huawei, and Baidu Cloud. These firms are expected to anchor the country’s self-reliance drive building chip ecosystems that rival Nvidia and Intel by 2030.
Balancing Economic Growth with Security Concerns
China’s policymakers now face a dual challenge: maintaining economic momentum while ensuring technological sovereignty. The Q3 2025 GDP growth of 4.8% suggests the economy is stabilizing, but weak domestic consumption and a soft property market continue to weigh on growth.
To counter this, the Five-Year Plan integrates tech investment into the macroeconomic strategy. Digital transformation is seen not just as an innovation goal but as a stimulus tool channeling resources into industrial upgrading and urban digitalization. The Digital China Initiative will link provinces through AI-powered data centers, 5G smart infrastructure, and blockchain-led administrative systems, allowing real-time coordination between state and private entities.
At the same time, the plan calls for stricter cybersecurity and data controls under the Data Security Law and AI Regulation Framework 2025, ensuring that innovation remains aligned with state interests. This balancing act reflects Beijing’s growing view that technological autonomy is national security.
U.S.–China Rivalry and the Global Tech Divide
The new policy roadmap arrives as Washington expands export controls on semiconductors and AI tools, pressuring global supply chains. The U.S. CHIPS Act and alliances with Japan, the Netherlands, and Taiwan have effectively redrawn the map of global technology access.
In response, China’s plan seeks to “de-Americanize” its innovation system not by isolation, but by fostering new alliances with the Global South, BRICS partners, and Belt and Road economies. This includes joint research hubs, shared standards for AI ethics, and digital currency integration via platforms like the e-CNY cross-border pilot.
The outcome could shape a bifurcated tech world one orbiting around U.S.-centric architectures, and another anchored in China’s state-guided, open-to-developing-world model. Analysts at Modern Diplomacy note that Beijing’s approach might resonate with nations seeking autonomy from Western digital hegemony.
Conclusion
China’s next Five-Year Plan marks a turning point a transition from catch-up industrialization to strategic technological independence. As the country faces mounting external pressures, its policies are evolving toward resilience, innovation, and self-sufficiency.
While challenges remain particularly in chip manufacturing and global market access the direction is clear: China aims to lead the next wave of global innovation on its own terms. The coming decade will test whether this strategy delivers sustainable progress or further deepens the technological divide shaping the 21st century.
