Xi Jinping hails breakthroughs in China’s AI and semiconductor sectors
China AI breakthroughs in 2025 highlight progress in advanced models and domestic chip development, shaping global technology competition.
Chinese President Xi Jinping said 2025 marked a year of major breakthroughs for the country’s AI and semiconductor industries. In his New Year’s address, he said that Chinese technology firms had made significant progress in AI models and domestic chip development.
China’s AI sector gained global attention with the rise of DeepSeek. The company launched advanced models focused on reasoning and efficiency, drawing comparisons with leading US systems and triggering volatility in global technology markets.
Other Chinese firms also expanded their AI capabilities. Alibaba released new frontier models and pledged large-scale investment in cloud and AI infrastructure, while Huawei announced new computing technologies and AI chips to challenge dominant suppliers.
China’s progress prompted mixed international responses. Some European governments restricted the use of Chinese AI models over data security concerns, while US companies continued engaging with Chinese-linked AI firms through acquisitions and partnerships.
Looking ahead to 2026, China is expected to prioritise AI and semiconductors in its next five-year development plan. Analysts anticipate increased research funding, expanded infrastructure, and stronger support for emerging technology industries.
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