New Five‑Year Plan, New Power Play: China’s Push to Dominate Physical AI
China’s 15th Five‑Year Plan (2026–2030) marks a shift from trying to catch up to aiming to lead the next technological era. The plan mentions AI more than 50 times, raises the priority of research with a national science budget of around 426 billion RMB for 2026 (+10%), and channels large funds — including a National AI Industry Investment Fund (≈60 billion RMB) and provincial matching funds — toward key areas: integrated circuits, advanced materials, biomanufacturing, quantum technology, and especially “embodied intelligence”/robotics. The goal to broadly integrate AI through the AI+ framework, build ultra‑large computing clusters, establish national test and training centers (40+ robot centers), and push standardization for humanoid robots creates both massive domestic demand and a structural advantage in scale and real‑world data. At the same time, short‑term growth targets are lowered to 4.5–5%, allowing room to reduce capacity in low‑value industries while the state guarantees mar