China bets on AI-manufacturing integration to narrow digital-economy gap with US



China’s policymakers want the digital economy to account for 12.5 per cent of gross domestic product by 2030, as Beijing accelerates its push to build a modern industrial system anchored in advanced manufacturing.

The goal represents a significant increase from the 10.5 per cent share achieved in 2025, which was announced on Thursday during the annual “two sessions” parliamentary meetings and exceeded the initial target.
A large part of China’s digital economy – activities facilitated by data, the internet and artificial intelligence – is expected to be fuelled by integration into the manufacturing sector.
An outline of the nation’s 15th five-year plan, unveiled on Thursday and covering the period to 2030, proposes 28 major projects focused on “strengthening industrial foundations and competitiveness, fostering emerging industries and new growth tracks, advancing frontier technologies and enhancing innovation capacity”.

Premier Li Qiang, speaking during the opening session of the National People’s Congress, said China “must build a modern industrial system with advanced manufacturing as its backbone”.

“We will pursue greater self-reliance and strength in science and technology, strengthen original innovation and make breakthroughs in core technologies in key fields, while advancing the development of a digital China,” Li said.

This year alone, the government plans to upgrade 5G networks and connect factory equipment to enable more automated, digitalised and intelligent production systems, while developing national advanced manufacturing clusters.

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