China issues new guidelines to develop ‘new quality productive forces’ via AI

The Chinese Communist Party and the State Council have issued the ‘Opinions on Developing New Quality Productive Forces,’ a policy document aimed at driving technological innovation and implementing ‘Artificial Intelligence Plus’ actions. The guidelines emphasize the importance of applying AI across various industries, including education, to foster new growth drivers.

Analysts suggest the document serves as a corrective measure to address issues arising from the rapid development of emerging industries, such as blind investment, wasteful competition, and ‘bubble-like’ expansion. The policy seeks to shift focus toward high-tech sectors like semiconductors, new energy, and robotics to mitigate the impact of the ongoing real estate crisis and sluggish domestic consumption.

While high-tech manufacturing investment shows growth, broader economic indicators remain pressured. Data from January to August 2026 shows a 7.2% decrease in fixed asset investment and a 19.9% drop in real estate development investment. Experts note that while the government aims to transition the economy through innovation, the long-term success of these high-tech sectors depends on improving market confidence and institutional environments.