Xi inspects Shanghai large-model incubator, underscoring China's AI ambitions

President Xi Jinping on Tuesday visited a large-model incubator in Shanghai, urging the city to take the lead in AI development and governance while highlighting China's vast potential for the industry.

The trip came four days after China's leadership convened a dedicated AI study session, during which Xi called for gaining a head start in this strategic sector.

"AI technology is evolving rapidly and entering a phase of explosive growth," said Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, as he visited the Shanghai Foundation Model Innovation Center, a large-model incubator home to over 100 enterprises.

During the group study session of the Political Bureau of the CPC Central Committee last Friday, Xi pointed out that AI, as a strategic technology leading the new round of sci-tech revolution and industrial transformation, has profoundly changed the ways people work and live.

The Party Central Committee attaches great importance to the development of AI, and has improved top-level design and strengthened implementation efforts in recent years, Xi said at the session.

In the incubator, Xi joined a salon themed on the autonomous evolution of next-generation intelligent agents, engaging in discussions with young innovators on the spot.

"AI is a nascent industry, and it's also an industry that belongs to young people," said Xi.

He then walked into an AI product experience store, where he inquired in detail about the functions and market trends of the products, and tried on a pair of smart glasses for a firsthand experience.

Shanghai announced a comprehensive plan last December aimed at developing a world-class AI industry ecosystem by 2025, including measures to step up global cooperation. In 2024, Shanghai's AI industry scale exceeded 400 billion yuan (about 55 billion U.S. dollars).

China's AI market is projected to experience substantial growth in the coming years, according to International Data Corporation. U.S. companies, including Tesla and Microsoft, have set their sights on the commercial prospects of China's AI market.

The Yangtze River Delta region, anchored by Shanghai, is at the forefront of China's AI innovation. DeepSeek, hailing from Hangzhou in the southern part of the delta region, is less than 200 kilometers away from Shanghai.

Noting China's rich data resources, complete industrial system and huge market, Xi said in Shanghai that the country holds broad prospects for AI development, emphasizing enhanced policy support and talent cultivation.

Cultivating and strengthening the AI industry has been included in China's 14th Five-Year Plan and its development vision for 2035, aiming to advance the sector toward a beneficial, safe and equitable direction.

A recent Stanford University report has shown that China is closing the gap with the United States in cutting-edge AI model development.

According to a report by the World Intellectual Property Organization, China topped the global rankings with over 38,000 patent applications for generative AI between 2014 and 2023.

"Despite external pressure and technological blockades, China has the capability to leverage AI technology to drive leapfrog economic growth and significantly enhance productivity," Liang Zheng, vice dean of the Institute for AI International Governance at Tsinghua University, told Xinhua.

"Amid the fragmented and exclusive AI governance landscape, China can play a crucial role in promoting global cooperation," added Liang.

Calling AI a global public good, the Chinese leadership has pledged to help Global South nations build tech capacity, thus narrowing the global AI divide.

Xi on Tuesday urged Shanghai to embrace its historical role as a leading international center for scientific and technological innovation and to build itself into a globally renowned sci-tech high ground.