China has unveiled a blueprint to foster advanced science and technology, including artificial intelligence (AI) and humanoid robots, as new engines for economic growth, triggered by the emergence of DeepSeek. This move is seen as a strategy to counter external uncertainties amid escalating US-China tensions and to restructure its economy.

Key Highlights:

Economic Growth Target: Premier Li Qiang set the annual economic growth target at "around 5%" in the government work report at the National People's Congress.
While maintaining the same target for the third consecutive year, it is considered a challenging goal given the rapidly changing international landscape.
Investment in Advanced Technology: China will focus on nurturing advanced industries such as 6G mobile communications, humanoid robots, and AI-powered smartphones and PCs, centering on the "AI+ Action" initiative.
To this end, it will allocate 398.1 billion yuan (approximately $80 billion) to the science and technology sector, a 10% increase from the previous year.
Economic Restructuring: In the final year of the 14th Five-Year Plan (2021-2025) and "Made in China 2025," China aims to reshape its economic structure through scientific and industrial innovation.
It plans to accelerate the digital transformation of traditional industries and foster advanced manufacturing to enhance the quality of economic growth.
Fiscal Policy: The fiscal deficit target is set at 4% of GDP, and the government will issue 300 billion yuan in ultra-long-term special treasury bonds to stimulate consumption.

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