China Accelerates Transition Toward “Advanced Technology Powerhouse,” Declares Direct Confrontation with the U.S.

Push to Foster Advanced Manufacturing Industries
Rising Importance of Industrial Innovation After the Trade War
Accelerated Drive for Technological Self-Reliance Amid U.S. Containment

China has approved its 15th Five-Year Plan (2026–2030) during the 20th Central Committee’s Fourth Plenary Session, prioritizing the acceleration of high-level technological self-reliance as its foremost national objective. As tensions from the U.S.-China trade war intensify, Beijing is emphasizing original innovation and breakthroughs in core technologies, signaling its determination to sustain long-term national investment in cutting-edge sectors such as generative artificial intelligence (AI), electric vehicles (EVs), and smartphones. The plan represents an all-out effort to elevate per capita GDP to the level of moderately developed nations, with analysts noting that the successful implementation of the 14th Five-Year Plan has reinforced China’s confidence.

Emphasis on Science and Technology Advancement, Massive Investment in Infrastructure and High-Tech Sectors

According to state-run Xinhua News Agency on the 24th, the Communist Party of China (CPC) reviewed and adopted the “Proposals of the CPC Central Committee on the Formulation of the 15th Five-Year Plan for National Economic and Social Development.” Beginning with General Secretary Xi Jinping’s work report, Central Committee members held closed-door meetings until the 23rd to examine and approve the proposal.

Participants stressed that the 15th Five-Year Plan must advance the “great rejuvenation” of the Chinese nation centered on “Chinese-style modernization.” The Party leadership set seven key goals: ① tangible results in high-quality development, ② a significant improvement in technological self-reliance and self-strengthening, ③ new progress in comprehensive reform, ④ visible enhancement of socialist civilization, ⑤ improvement of people’s livelihoods, ⑥ the construction of a “Beautiful China,” and ⑦ reinforcement of the national security shield.

The leadership underscored that by 2035, China will achieve remarkable growth in economic, technological, and military strength, as well as in comprehensive national power and global influence. The goal is to raise per capita GDP to the level of moderately developed nations, thereby achieving the fundamental realization of socialist modernization. Previously, Beijing aimed to reach “middle-income status” by 2035, but this marks the first time it has explicitly tied the target to per capita GDP. As of last year, China’s per capita GDP stood at roughly $13,000, far below the United States’ $86,000. While China already rivals the U.S. in total economic output, this new benchmark reflects its ambition to raise individual income levels and transition into a genuinely developed economy.

The top priority for achieving these goals is the acceleration of high-level technological self-reliance. The leadership called for the integrated promotion of “education power, science and technology power, and talent power,” as well as for improving the efficiency of the national innovation system. It also emphasized strengthening fundamental technologies and advancing talent development in a coordinated manner. The focus on technological innovation and emerging industries reflects Beijing’s determination to secure future growth engines.

Successes Under the Previous Plan: Sustained Economic Growth and Technological Progress

China’s emphasis on technological innovation and self-reliance began in earnest after the first Trump administration ignited the U.S.-China technology rivalry. The COVID-19 pandemic further accelerated the technological rise of domestic Chinese big-tech firms, with advances in AI and robotics narrowing the gap with the U.S. and reducing external dependence. Through the 15th Five-Year Plan, Beijing now aims to seize global leadership in high-tech sectors. The plan prioritizes emerging industries such as quantum technology and brain-computer interface systems, with large-scale investments signaling China’s intent to catch up with—or surpass—the U.S. within five years.

This ambition is fueled by confidence in the success of the 14th Five-Year Plan (2021–2025). The Chinese government considers the plan a success, particularly in economic growth and technological innovation. China’s GDP is expected to reach $19.3 trillion this year, an increase of roughly $4.8 trillion over the past five years. R&D spending reached $168 billion last year—nearly 50% higher than at the end of the 13th Five-Year Plan.

Beijing highlighted several landmark technological achievements: the operation of its first space station Tiangong; the start of the 4th-generation nuclear reactor at Shidaowan; the Chang’e 6 mission’s successful lunar far-side sample collection; and the commercial flight of the domestically produced C919 aircraft. In shipbuilding, the Fujian electromagnetic aircraft carrier, the Aida Modu cruise liner, and the world’s largest LNG carrier were hailed as the “Three Pearls” of industrial progress. Two decades ago, China was considered a peripheral player in global technology—today, it is positioning itself as a global leader.

Accelerating the “Technological Rise” — State-Led Drive for Scientific and Industrial Autonomy

China’s growing competitiveness rests on its formidable scientific and technological capabilities. Since 2019, it has surpassed the U.S. in both academic paper output and international patent filings, and has topped the Nature Index for two consecutive years (2023–2024). In applied technology, Chinese firms lead globally: Huawei ranks as the world’s top patent filer (followed by Samsung Electronics), and four Chinese companies are among the global top ten. In AI, China and the U.S. are the two dominant powers, with Chinese researchers accounting for nearly half of the world’s top AI scholars and 70% of all generative AI patents filed over the past decade.

Three major factors underpin China’s rapid ascent to technological supremacy.
First, a consistent and long-term national policy for science and technology. Since 2015, China has enshrined its “Science and Technology Power” strategy as a state priority, setting a clear goal of becoming a global tech superpower by 2045—the 100th anniversary of the People’s Republic.

Second, an aggressive talent strategy. Through programs such as the “Thousand Talents” and “Ten Thousand Talents” initiatives launched in 2009, China has attracted world-class scholars and researchers with generous salaries, housing, and research funding. The “Ten Thousand Talents Plan” expanded this approach to include young scientists and applied technology professionals, helping China secure thousands of top-tier experts. Domestically, early-stage STEM education has been reinforced through elite programs that allow gifted students to enter universities early and participate directly in research projects, fostering a generational pipeline of scientific talent.

Third, concentrated investment in research-oriented universities. Since the 1990s, projects such as “Project 211” (to foster 100 top universities), “Project 985” (allocating 1% of national revenue to nine elite universities), and the 2017 “Double First-Class” initiative (to build world-class universities and disciplines) have elevated about 40 institutions into the national research elite. As a result, in the 2025 QS Asia University Rankings, Peking University ranks first, with Fudan, Tsinghua, and Zhejiang also in the top ten—standing in stark contrast to the U.S., where funding cuts and political attacks have eroded the foundations of its major research universities.