China increases investments in AI and intensifies technological confrontation with the US

China increases investments in AI and intensifies technological confrontation with the US - intelligence

June 22 2026, 11:00 AM • 1148 views

China plans to invest about 2 trillion yuan in building data centers for AI, purchasing 80% of equipment from local companies. China also imposes restrictions on foreign travel for AI specialists.

China sharply strengthens its position in the global technological competition with the US, announcing large-scale investments in the development of artificial intelligence and the construction of a network of modern data centers. This was reported by the Foreign Intelligence Service, writes UNN.

China is sharply intensifying its efforts in the global competition with the US for leadership in the field of artificial intelligence. Beijing plans to invest about 2 trillion yuan (nearly 295 billion dollars) in building a network of modern data centers across the country. The project is intended to provide China with its own computing capabilities for AI development and reduce dependence on American technologies

The PRC is also betting on local manufacturers. At least 80% of equipment, including chips for artificial intelligence, is planned to be purchased from Chinese companies, primarily Huawei. This will allow displacing American giants Nvidia and AMD from government projects.

Against the backdrop of escalating technological confrontation with the US, China is introducing new restrictions for specialists in the field of AI. Startup founders, leading researchers, and company executives must obtain permission from authorities to travel abroad. Unofficially, this is explained by fears that valuable specialists could be poached by American companies or research centers.

Beijing views artificial intelligence as a strategic sector on which the country's economic and technological advantage will depend. That is why the PRC is simultaneously investing record funds in infrastructure and trying to retain the best talent within the country, intensifying competition with the US for the future of AI.

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