China Pushes AI and Advanced Manufacturing to Drive
Economic Growth
Premier Li Qiang says boosting AI-powered
manufacturing can help drive new growth for the economy
·
During visits to:
o
Xiaomi’s electric vehicle factory
o
Beijing’s Humanoid Robot Innovation Centre
Li stressed the importance of accelerating
AI-powered manufacturing and intelligent robotics development.
·
The Humanoid Robot Innovation Centre hosts more
than a dozen embodied AI start-ups, research institutions and industrial
partners focused on robotics technologies.
AI and Robotics Seen as Strategic Growth Drivers
·
Li described AI and intelligent robotics as
essential for creating:
o
“New growth momentum”
o
Stronger industrial competitiveness
o
Higher-quality economic development
·
According to Li, AI is rapidly transforming:
o
Manufacturing models
o
Industrial structures
o
Production systems
·
He urged faster adoption of AI across:
o
Research and development
o
Production processes
o
Quality inspection
o
After-sales services
·
Li also encouraged development of:
o
Industry-specific large language models (LLMs)
o
AI agents tailored for manufacturing and industrial
use
Government Support for AI Deployment
·
Li called on government agencies and state-owned
enterprises to expand real-world testing and deployment opportunities for
AI-powered robotics and automation technologies.
·
He emphasized stronger policy support through:
o
Equipment upgrade programs
o
Incentives for first-of-their-kind technologies
o
Industrial innovation platforms
o
Support for core technology research
China Responding to Economic Pressures
·
Beijing increasingly sees AI and advanced
manufacturing as critical tools to offset:
o
Weak domestic demand
o
The prolonged property sector downturn
o
Slowing private-sector confidence
o
Rising trade tensions with the United States and
Europe
·
China’s core AI industry was valued at over 1.2
trillion yuan (about US$174 billion) in 2025.
·
More than 30% of China’s large manufacturing firms
had adopted AI technologies by the end of 2025, according to Industry Minister
Li Lecheng.
“New Quality Productive Forces” Strategy
·
The push aligns with Chinese President Xi Jinping’s
strategy focused on “new quality productive forces,” which emphasizes
innovation-driven growth through advanced technologies.
·
China has expanded its “AI Plus” initiative,
launched in 2024, to promote AI integration across industries and economic
sectors.
·
Li said intelligent robots combine advances in:
o
Large AI models
o
Advanced manufacturing
o
New materials technologies
Focus on Humanoid Robots and Embodied AI
·
China’s upcoming 15th Five-Year Plan places:
o
Artificial intelligence
o
Robotics
o
Advanced manufacturing
at the center of national industrial upgrading
efforts.
·
Embodied AI and humanoid robots are emerging as
major strategic priorities for Chinese policymakers.
·
Local governments, including Shanghai, have
introduced targets to accelerate humanoid robot deployment in factories by
2030.
Economic Outlook
·
A forecast by Goldman Sachs projected that
generative AI could:
o
Raise China’s long-term economic growth potential
from 2026 onward
o
Increase annual GDP growth by 0.2–0.3 percentage
points by 2030
·
China’s leadership increasingly views AI-driven
industrial transformation as central to maintaining global competitiveness amid
intensifying geopolitical and economic pressures.
[ABS News Service/19.05.2026]
Chinese
Premier Li Qiang on Monday urged deeper integration between AI companies and advanced manufacturing, as
China steps up efforts to develop new growth drivers amid slowing domestic demand
and mounting external pressures.
During
a tour of both Xiaomi’s electric vehicle factory and the Humanoid Robot Innovation
Centre, home to more than a dozen embodied AI start-ups, industry partners and research
institutions in Beijing yesterday, Li said faster development and wider application
of intelligent robots and AI-powered manufacturing technologies was needed for the
national economy.
He
described them as key to fostering “new growth momentum and competitive advantages”,
according to a Xinhua readout released late on Monday.
Li
said China should accelerate the use of AI across manufacturing processes, including
research and development, production, quality inspection and after-sales services,
while supporting the development of industry-specific large language models and
AI agents.
“Artificial
intelligence is rapidly integrating with advanced manufacturing and is profoundly
changing production models and industrial forms,” Li said, according to Xinhua.
Li
also urged government departments and state-owned enterprises to increase the number
of real-world scenarios for testing and deploying the new technologies, as Beijing
seeks to accelerate widespread commercial adoption of AI-powered robotics. He also
called for greater use of policy support measures, including equipment-upgrade programmes
and incentives for first-of-their-kind technologies.
The
comments come as Beijing increasingly views AI and advanced manufacturing as critical
to offset broader economic headwinds, including a prolonged property downturn, weak
confidence in the private sector and rising trade tensions with both the United
States and Europe.
China’s
core AI industry was valued at over 1.2 trillion yuan (US$174 billion) in 2025,
while more than 30 per cent of large manufacturers had adopted AI technologies by
the end of last year, Industry and Information Technology Minister Li Lecheng said
during China’s annual parliamentary meetings in March.
Beijing
has in recent years prioritised what President Xi Jinping has termed “new quality
productive forces” – economic drivers from recent advancements in technology – and
has expanded its AI Plus initiative, introduced in 2024, to promote wider adoption
of AI across industries.
Li
said intelligent robots combine breakthroughs in large AI models, advanced manufacturing
and new materials, and called for stronger support for fundamental research, key
technologies and industrial innovation platforms.
China’s
15th five-year plan places AI, robotics and advanced manufacturing at the centre
of the country’s strategy to upgrade its industries, with embodied AI and humanoid
robots emerging as key focus areas. Local governments, including Shanghai’s, have
also rolled out targets to accelerate the adoption of humanoid robots in factories
by the end of 2030.
A
Goldman Sachs Research forecast last year predicted that generative AI could raise
China’s potential growth from 2026 and boost GDP growth by 0.2 to 0.3 percentage
points by 2030.