China doubles AI and Tech while Trump increases trade pressure

BEIJING – The undercurrent of China’s annual parliamentary meetings this week are American trade tensions – and how Chinese technology compensates that pressure.

The largely ceremonial meeting of representatives in Beijing this year came just when US President Donald Trump spoke to the congress and imposed new rates on Chinese goods. It is a clear air resistance, while Chinese companies have only had to deal with more difficult restrictions on access to high -quality semiconductors and other advanced technology.

“International … An increasingly complex and serious external environment can have a greater impact on China in areas such as Trade, Science and Technology,” said Chinese Prime Minister Li Qiang in his annual report on government work during the Opening Ceremony of the National People’s Congress on Wednesday, according to an official English translation of the Chinese.

It was an unusually grim assessment, at least at the seven parliamentary meetings I attended. But I also felt a greater willingness to support the private sector than in the past – especially because it relates to technical innovation, such as with Chinese AI Company Deepseek.

“We will promote the healthy and well -regulated development of the platform economics and play better on his role in inspiring innovation, expanding consumption and stabilizing employment,” Li said in the work report.

That meant the last signal that Beijing now wants to support the private sector after having a much more limited position and to impose large fines on technical giants Alibaba and Tencent, often called “platform” companies in China. Many companies and industries in China are historically dominated by the state.

The recent rise of Deepseek showed many international investors – who had become careful on the slowing economy – how a Chinese company could compete with the US on AI, regardless of sanctions from the White House.

Beijing quickly confirmed the success of the startup. Liang Wenfeng van Deepseek lived in January a meeting with Prime Minister Li and a symposium with Chinese President Xi Jinping in February.

Although Deepseek did not receive a specific mention in the government’s work report, a member of the team who prepared the report mentioned – and applications such as Kuaishou’s Kling AI for video calculation – while talking to the press on Wednesday about the fast AI development of China.

“Historically, technological progress is often an important force for breaking barriers and protectionism,” said Chen Changsheng, who is also deputy director of the Research Office of the State Council, translated into Mandarin by CNBC.

“We are looking forward to how AI will become a positive energy under the current international background to promote cooperation and multilateralism,” he said.

“Tech” received another mention in this year versus report last year, and “reform” received 10 more entries, according to the Chinese language versions. Technical self -reliance also received his own subsection in the latest annual work report from China, in contrast to a passing mention in 2024.

The legislative power of China has discussed a new law to support the private sector. Beijing said that it would be determined as quickly as possible after further discussions and revisions.

This year, the policy will probably be driven more of the bottom, instead of the top, said Ding Wenjie, investment strategist for global capital investments at China Asset Management Co., according to a CNBC translation of its comments from Mandarin language.

She expects the growth in AI and leading technology to encourage the development of other industries, but warned that it will probably cost companies more than just one or two quarters to see results.

China’s parliamentary meetings will be officially completed early next week. It is expected that more official comments about technology and the private sector will drip in the coming days.

One of the top priorities for the coming year, said Prime Minister Li, “supports” the extensive application of large-scale AI models. ” Beijing plans to increase the financing for biomanufacturing, quantum technology, AI linked robotics and 6G technology.

The industry -specific goals such as China tries to stimulate consumer spending, to minimize the resistance of real estate and navigate trade tensions with the US

The “Policy focus of China is to accelerate AI acceptance and autonomous driving, while gradual progress has been made in restructuring housing and [local government financing vehicle] Guilt, “Morgan Stanley’s Chief China economist Robin Xing and a team said on Wednesday in a note. They noted that the” tax package was awakened: a [2 trillion yuan ($280 billion)] Expansion with mild support with consumption. “

Chinese official comments during this week’s meetings indicate a preference for open-source models.

Chen in the work report drafting team warned of “excessive” use of private AI and projects that could fragment the market, and proclaimed “large-scale applications” instead.

China will also work on increasing the calculation capacity and developing “a system of open-source models,” said Economic Planning Agency, the National Development and Reform Commission, in its plan for the coming year.