The Chinese government is prepared to pour substantial funds into the development of AI products and to support relevant companies. With clear determination, China aims to emerge victorious in the AI race. Thus, the People's Bank of China will reportedly allocate 1 trillion yuan ($137.5 billion) over the next five years to back up local AI companies.
The financial institution plans to "strengthen the foundation" for the AI industry. In addition, the People's Bank of China will fund the construction of AI computing centers, auxiliary facilities, and additional infrastructure. The bank will also offer property insurance services to enhance companies’ ability to manage risks.
Meanwhile, China has already established a system to facilitate the integration and modernization of AI technologies. Major technology enterprises in the country will receive funding under this program.
The People's Bank of China is also ready to support new directions, particularly the integration of AI with robotics, economics, bio-manufacturing, and other sectors. Moreover, the financial institution will assist companies in expanding internationally.
Notably, in January, US President Donald Trump announced a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence. This move comes as no surprise as China is rapidly catching up with the United States, with its specialists, particularly those from the AI startup DeepSeek, releasing a model that has rocked the market. According to the developers, it is far superior and more affordable than its American competitors. As a reminder, DeepSeek's recent triumph triggered a crash in the stock and cryptocurrency markets.
