Xi Jinping Formulates Strategy to Counter US with AI and Military

The geopolitical situation has been heating up since last year. The United States (US) has deployed its military forces to several countries, such as Venezuela and Iran. At the same time, Washington has pressured various trading partners through import tariff policies, including Indonesia. This situation has heightened China’s vigilance. President Xi Jinping is reported to have prepared a long-term strategy to confront the rivalry with the US. In this strategy, Beijing is said to be redirecting its resources towards artificial intelligence (AI), quantum computing, and various other strategic technologies, while continuing to strengthen its military capacity. The ambitious plan for the next five years was outlined at the national parliament session in Beijing some time ago, as reported by the New York Times on Wednesday (4/3/2026). The direction of this policy indicates that Xi views the competition with the US as ultimately being determined by superiority in technological innovation that underpins economic, military, and cultural power. Therefore, China is now aggressively developing bio-manufacturing, hydrogen and fusion energy, brain-computer interfaces, embodied intelligence, and 6G mobile networks. “In the midst of fierce international competition, we must win the strategic initiative,” states the plan. These restrictions target many sectors, including private companies, which are subject to strict rules regarding the use and access to technology originating from China. One example occurred during President Joe Biden’s administration. In 2023, the US government restricted Nvidia from selling advanced chips to China, including the H200 graphics processing unit (GPU) used for AI development. Biden argued that selling US technology to China could threaten his country’s national security while giving Beijing an advantage in the AI race. In 2025, that policy was then reversed by Donald Trump, who again allowed Nvidia to sell advanced AI chips to the Chinese market. Most recently, the US Federal Communications Commission (FCC) has also banned the use of the latest foreign-made routers starting in January 2026. Although no specific country is named, many analysts believe this policy is primarily aimed at curbing the momentum of hardware from China. Previously, Chinese technology companies such as Huawei and ZTE have also been targets of restrictions.