China is speeding up its technology race just as Trump and Xi Jinping prepare for high-stakes calls in Busan, South Korea. From semiconductors to AI, Beijing’s new tech surge isn’t just about innovation—it’s about global positioning.
The message is clear: China wants to enter negotiations, showing it no longer depends on Western technology.
China’s Five-Year Plan: A Blueprint for Tech Independence
On October 23, 2025, China unveiled its 15th Five-Year Plan, kicking off in 2026. The contents were laser-focused on tech self-reliance.
The goal of the 15th Five-Year Plan? Consolidating the foundation to achieve socialist modernization by 2035. This entails increased economic growth and a high level of scientific and technological self-reliance.
The plan does come off as a geopolitical encounter, coinciding with the upcoming meeting between China and the US. However, that’s not all there is to it.
While the fact remains that China has long been restricted by levies, tariffs, and bans by the US, this move is not solely in response to these actions.
The new five-year plan is China’s signal to the world that its economic and technological trajectory will be determined by its own long-term strategy, not external pressure.
What exactly is China doing?
Several concrete steps illustrate the move:
- The five-year plan emphasizes domestic innovation: homegrown semiconductors, artificial intelligence, and other frontier tech.
- China has long maintained dominance over the production and processing of rare earth metals, which is essential to the production of EV batteries and defense tech. To get some form of tech leverage, China may delay some of its export restrictions on rare earth in exchange for its demands.
- China is also gearing to heavily invest in tech sectors to become less reliant on foreign components and services.
Potential Impacts the Five-Year Plan Will Have on Trump-Xi Talks
The plan explicitly prioritizes “scientific and technological self-reliance and strength” and economic growth. This is a direct, long-term response to the U.S. use of export controls and restrictions.
The new five-year plan gives China a non-negotiable and multi-year plan to reduce dependence on foreign technology. With this, China:
- China has a stronger position heading into the summit.
- Can negotiate from a position of strategic economic reliance against trade imbalances/concessions
- Is less likely to make fundamental concessions on industrial policies, as the goal is to bypass U.S. chokepoints
- Resist structural changes that will jeopardize its 2035 modernization goals.
The Summit Backdrop
The Trump-Xi talk is happening on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meeting. The agenda? Technology and trade. Trump enters the meeting with a range of demands: fairer trade, less forced tech transfers, and control of China’s tech advances.
Xi Jinping, on the other hand, is trying to defend China’s industrial strategy and ensure they don’t get boxed in. And with the recent release of China’s five-year plan, the signal is strong. “We’re serious, we have options, we are investing for the long term—but hey, let’s chat access,” China is telling the world.
What This Means for the Global Tech Ecosystem
China’s shift towards tech independence is redrawing the map of global innovation. Here’s how it’s transforming the ecosystem:
- A New Phase in the Innovation Race: China’s push into AI, green tech, and smart manufacturing signals a global shift. The innovation race is no longer just East vs. West—it’s a multi-clear-center race where emerging players compete to define future standards.
- Reconfigured Supply Chains: As China localizes chipmaking and materials processing, the world could see regionalized supply chains. This could lead to a scenario where political alignment and trade policy cluster tech ecosystems.
- Shifting Power Dynamics: By linking technology and sovereignty, Beijing is challenging the US’s long-held dominance. Expect more nations to invest in digital sovereignty and cyber reliance to hedge against global tech fragmentation.
- Business and Investment Implications: Multinationals face rising regulatory complexity but also new openings in areas like renewables, 5G infrastructure, and AI-driven manufacturing. The winners will be those who can adapt quickly and operate within both systems.
- Two Competing Tech Worlds: The future may hold two parallel digital ecosystems—one led by the US, the other by China. Each will shape its own rules, from data privacy to hardware standards, forcing global firms to innovate in both languages of tech.
