China Unveils 10 Trillion Yuan Plan to Boost AI and Infrastructure

China’s top economic planner on May 22 detailed a sweeping investment plan exceeding 10 trillion yuan ($1.4 trillion) for its 15th Five-Year Plan, targeting advanced infrastructure and artificial intelligence as key drivers for future growth. The National Development and Reform Commission (NDRC) committed over 5 trillion yuan to new power grids and another 5 trillion yuan to urban pipeline networks, while signaling accelerated policy support for its "AI+" and embodied intelligence initiatives.

"We support Chinese enterprises to integrate into the global innovation network... and have never required Chinese technology companies not to accept foreign investment," Li Chao, a spokesperson for the NDRC, said at a press conference, pushing back against claims of technological decoupling.

The infrastructure spending aims to modernize China's backbone, with plans to construct new ultra-high voltage transmission lines and upgrade urban gas, water, and heating pipelines totaling 770,000 kilometers. The push comes as China’s AI industry pivots from applications to foundational technology, with the ratio of tech-layer to application-layer firms now standing at 6:4, according to a recent Forbes China report. The policy support for AI is expected to accelerate this shift, with the NDRC preparing new files to speed up the rollout of its "AI+" action plan.

The dual-pronged strategy highlights Beijing's focus on securing its industrial base while simultaneously pushing into frontier technologies to create new economic engines. For investors, the plan signals significant opportunities in state-backed infrastructure and domestic tech champions, particularly in AI hardware and robotics, as China aims to get robots into "factories, shopping malls, and homes." The NDRC also confirmed it is conducting research for future AI-specific legislation, suggesting a more formalized regulatory environment is forthcoming.

From Grid to Ground: A 10 Trillion Yuan Foundation

The bulk of the announced capital, over 10 trillion yuan, is allocated to upgrading core infrastructure during the 15th Five-Year Plan period (2026-2030). The investment is split roughly evenly between creating a "new type of power system" and overhauling underground pipeline networks.

The power grid investment of over five trillion yuan will focus on building out transmission channels to handle rising clean energy capacity and balance regional power disparities. The plan includes upgrading urban distribution networks and reinforcing grids in less-developed counties. The other five trillion yuan will target the 770,000 kilometers of aging or inadequate underground pipelines for gas, water, and heating, a move designed to improve urban safety and efficiency.

Embodied Intelligence: Beijing's Bet on Physical AI

Beyond concrete and wires, the NDRC’s plan heavily emphasizes the buildout of "embodied intelligence," or AI-powered robotics. The commission plans to build critical training and testing infrastructure to accelerate the development of robots that can operate in diverse, real-world environments.

This policy directive is already materializing in the private sector. Unitree Robotics, which commands nearly 70 percent of the global quadruped robot market, filed for a STAR Market IPO this year on the back of 1.7 billion yuan in 2025 revenue. Industrial humanoid maker UBTECH Robotics delivered over 500 of its Walker S2 units to factories in 2025, with plans to produce 10,000 units annually by 2026. The NDRC's goal of putting robots in "factories, shopping malls, and homes" is further supported by startups like GigaAI, which plans to pilot its S1 home-assistant robot in Wuhan households as early as 2027. This top-down policy support is expected to fuel a rally in Chinese tech stocks, particularly those focused on AI applications and hardware.

This article is for informational purposes only and does not constitute investment advice.