China Expands AI Plus Plan to Challenge US Dominance
China has expanded its Artificial Intelligence (AI) initiative to counter the growing dominance of the United States, unveiling an enhanced AI Plus Plan. Under this programme, the country is preparing to link its nationwide data centres into a unified network to accelerate AI research and development. This strategy is expected not only to strengthen China’s position in global AI competition but also to open new avenues for economic growth.
The Broad Scope of the AI Plus Plan
In August 2025, the Chinese government announced the AI Plus Plan, considered one of the most ambitious and comprehensive initiatives in the AI sector. Its primary objective is to better coordinate all resources and capabilities related to AI. The plan involves connecting data centres across the country into a vast network, enabling faster AI trials, data processing, and research. During a three-day conference in Beijing, leading companies such as Alibaba, Tencent, Baidu, and China Telecom pledged their support to advance this project.
Competition with the United States in Technology
The rivalry between China and the United States in AI has intensified in recent years. While the US has rolled out its AI Action Plan, China has positioned the AI Plus Plan as a powerful counter-strategy. According to Beijing, its interconnected data centre network will give the country an edge in the technology race. Despite US restrictions on advanced chip exports, China is enhancing its AI capacity through innovation and networking. By utilising both domestic and foreign-made chips, the country has expanded the computing power and resources necessary for AI advancement.
Data Centre Networking and AI Stacks
By June 2025, China had built around 10.85 million AI stacks — groups of servers and equipment essential for AI operations. This represents a 30.7% increase compared to the previous year, underlining the nation’s steady progress in AI. The achievement has been made possible through collaboration between major state-owned and private firms such as China Mobile, China Unicom, Alibaba, Baidu, and Tencent. Interlinking these data centres will significantly improve access to AI resources, accelerating both scientific research and commercial applications.
Driving Economic Growth and Productivity with AI
At its core, the AI Plus Plan aims to elevate China’s economy. The government views AI not just as a technological tool but as a primary driver of economic expansion. According to official policy documents, AI will transform industries, agriculture, services, and consumer markets. By enhancing industrial processes, smart farming, and service delivery, China expects to improve its overall factor productivity and strengthen its economic foundation.
Boosting Scientific Research with AI
The AI Plus Plan also places strong emphasis on scientific research. It will support the rapid development of large AI models and promote the sharing of high-quality datasets. The goal is to advance AI in ways aligned with human values while fostering machine-human collaboration. Philosophers and social scientists are being brought into the fold to address the ethical and decision-making challenges of AI.
Industrial Applications of AI
China is accelerating the integration of AI across industries. From production, design, and testing to customer service, AI is being embedded at multiple levels. Smart factories, robotics, drones, and other automated systems are reshaping agriculture and service sectors. This large-scale adoption makes China’s approach a potential model for other industrial powers.
Roadmap for Future AI Goals
Beijing has set clear targets: by 2027, AI-powered smart devices and agents should reach more than 70% penetration in key sectors, with this figure climbing to 90% by 2030. By 2035, China envisions a fully intelligent economy and society, where technology drives both social and economic progress.
Conclusion
The AI Plus Plan highlights not only China’s pursuit of greater competitiveness in technology but also its ambition to use AI as a foundation for economic prosperity, scientific innovation, and social development. With its data centre networking and growing AI stack capabilities, China has demonstrated its readiness to achieve its strategic AI goals.
As a result, China is poised to further cement its position as a global technology leader in the coming years. This initiative also carries the potential to shift the balance of global technology, deepening the rivalry between China and the United States while setting the course for the future of the digital age. In this context, the AI Plus Plan stands as both a test of China’s talent and resources and a major challenge for the global technology landscape.
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