China’s Xi prioritises ‘AI-plus’ and consumer spending to counter economic headwinds
China's leader reveals new AI and spending push to counter economic slowdown.
Deep Dive
Chinese President Xi Jinping has prioritized an 'AI-plus' innovation strategy and boosting consumer spending to overcome economic challenges in 2026. In previously unreleased comments from December, Xi emphasized growing incomes, expanding quality goods/services, and eliminating consumption restrictions. The push comes as retail sales grew only 3.7% last year, trailing China's 5% overall economic growth. The revelation may signal fresh measures ahead of China's annual parliamentary meetings next month.
Why It Matters
China's massive new focus on AI and domestic consumption could reshape global tech competition and economic policy.