Signal

China's cabinet checks on the 'AI+' push and names its next priorities

October 18, 2026

October 18, 2026All signal

China's State Council executive meeting, chaired by Premier Li Qiang on 16 October, heard a report on the progress of the "AI+" initiative, according to the official readout published by Xinhua. The meeting called AI "a key variable shaping future development" and said policy should start from China's complete industrial system, rich application scenarios and strong engineering capacity. Its stated priorities: let deployment pull technology forward, strengthen algorithm research and work on technical weak points, coordinate computing power with electricity supply, and raise the supply of high-quality data. On applications, it asked for closer matching of supply and demand with the real economy as the focus, joint research between users and developers, support for pilot-scale validation, and more cultivated scenarios so that AI "converts into real productive forces". On risk, it asked for sector-by-sector, tiered rules, better risk assessment, and a firm safety bottom line. The same meeting discussed drafts of the Teachers Law and Price Law revisions and approved changes to 14 administrative regulations.

Our take

Deployment is now the official test, not model launches. The readout puts computing power, electricity and data ahead of any new grant programme, which suggests the next round of money follows use cases that already run. Watch whether "coordination of compute and electricity" turns into tariff or grid rules: that is where AI policy starts costing real infrastructure money.

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