China is putting $295 billion behind a single bet: that it can build a unified, domestically powered AI infrastructure before the end of the decade. The five-year plan, worth approximately 2 trillion yuan, would create a nationwide network of interconnected AI data centers coordinated by the National Development and Reform Commission (NDRC).
What the plan actually looks like
The core objective is to take China’s currently fragmented patchwork of AI data centers and stitch them into one cohesive national computing network by around 2028. State-backed telecom giants China Mobile and China Telecom are expected to manage the majority of these facilities.
An estimated 80% of the required technology will be sourced from domestic suppliers, with Huawei as the most prominent name on that list. Beijing has been methodically cultivating domestic chip and hardware ecosystems specifically because US export controls have made reliance on American tech an unacceptable strategic vulnerability.
The broader strategic context
This initiative builds on the $8.2 billion National AI Industry Investment Fund that China launched in January 2025, and it will align with the country’s upcoming 15th Five-Year Plan.
In May 2026, reports surfaced that China was exploring AI token futures on the Shanghai Futures Exchange. The concept involves creating tradable tokens tied to computing resources, essentially turning AI compute into a commodity that can be priced and traded like oil or copper.
China’s AI sector gained unexpected momentum when DeepSeek demonstrated that competitive large language models could be built with fewer high-end chips than previously assumed.
What this means for investors
Huawei is the most obvious beneficiary, but the 80% domestic sourcing requirement means hundreds of smaller suppliers in chips, cooling systems, networking equipment, and power infrastructure will see demand spike. For Western AI companies, a unified Chinese AI network that runs almost entirely on domestic tech reduces the addressable market for US chipmakers and cloud providers in one of the world’s largest economies.
If the Shanghai Futures Exchange moves forward with compute-linked financial products, it would create an entirely new asset class at the intersection of traditional commodities markets and the digital asset ecosystem.
Huawei’s AI chips have improved dramatically, but independent benchmarks still show gaps compared to Nvidia’s latest offerings. Building a national AI network on chips that are a generation behind could mean China has the infrastructure but not the cutting edge.