China Plans 2 Trillion Yuan Investment for National AI Chip Network, Targets 80% Domestic Chip Adoption by 2028

According to Beating monitoring, Chinese government departments including the National Development and Reform Commission plan to invest approximately 2 trillion yuan (about $295 billion) over the next five years to build a national data center network, aiming to advance domestic AI industry development and secure technological independence in critical chip competition.

The blueprint, being drafted by core state agencies and implemented by state-owned telecom operators China Mobile and China Telecom, mandates that at least 80% of AI chips and related equipment must come from domestic suppliers such as Huawei, targeting full network integration by 2028. In May 2026, nine domestically-developed AI chips from companies including Huawei, Alibaba, Biren Technology, and Moore Threads passed security assessments by national technology authorities, clearing the way for broader adoption in high-security sectors including finance, healthcare, manufacturing, and logistics.