China Bets Billions on AI and Chips to Break U.S. Tech "Chokehold"

China Bets Billions on AI and Chips to Break U.S. Tech "Chokehold" A massive, state-coordinated push is underway across China to achieve self-sufficiency and leadership in foundational technologies, with a sharp focus on advanced semiconductors and artificial intelligence (AI). Provinces and major cities are deploying hundreds of billions of dollars in a direct response to U.S. export controls, aiming to break foreign dependencies in what officials term strategic "chokepoints" [51155][95150][86995]. The eastern technology hub of Zhejiang has announced a five-year plan targeting the manufacture of AI chips as small as 3 nanometers, a direct effort to counter the U.S. strategic "chokehold" on cutting-edge semiconductor technology [51155]. This follows Shanghai's launch of a $10 billion investment plan, with the majority of funds directed into microchips and AI [43531]. Nationally, the strategy is backed by a new state-backed semiconductor investment fund worth over $47 billion, focusing on developing the advanced equipment needed to build a domestic chip supply chain [86995]. The draft for China's next five-year budget allocates 426.42 billion yuan (US$61.7 billion) to science and technology, specifically targeting "future industries" like AI [93804]. This pivot marks a fundamental shift in China's industrial strategy, moving aggressively from absorbing foreign technology to creating its own in next-generation fields [59734]. The approach is defined by state coordination, deploying AI and semiconductors as core components of national infrastructure aligned with government planning [109135]. During a recent inspection of a Beijing technology park, President Xi Jinping underscored the focus on achieving "high-level" technological independence [71486]. Private companies are aligning with this national directive. Tech giant Xiaomi is intensifying a major five-year investment plan into semiconductors and AI, with its CEO stating firms must spend on such "core technologies" to ensure growth [86064]. Analysts see the concerted effort as a move to secure technological leadership and reduce reliance on other nations, deepening the global tech rivalry with the United States [95150][86995]. China Targets 3nm AI Chips to Break US "Chokehold" China's New Plan: Beat US Tech Rivals with AI and Fusion Power China's Tech Pivot: From "Catch-Up" to Cutting-Edge AI War: US Bets on Markets, China Bets on Control China Bets $47 Billion to Break the Chip Barrier Shanghai Bets $10 Billion on Chips and AI in Tech Race China's $62 Billion Bet Mirrors Musk's Vision Chinese Provinces Prioritize Tech and Self-Reliance in New Economic Plans Xi Inspects Tech Park, Stakes Claim in Global Innovation Race Xiaomi Bets Billions on Chips and AI as Rivals Build Robots