China Policy Monitor No. 1651

CHINA'S AMBITIOUS NEW AI+ PLAN
In August, Beijing launched its "AI+" initiative, a decade-long national blueprint to propel the country into a new "intelligent civilization." The plan calls for a sweeping transformation of politics, economy, society, science, and global engagement. With the widespread application of humanoid embodied intelligence, AI will no longer be confined to simple production tasks but will participate in complex production decision-making processes in human form. By 2035, robots will reshape production, assist in governance, and even serve as "companions and children" in households. Embedded AI systems will become autonomous producers alongside humans, transforming social structures, family life, and human relationships. "AI+" is the pinnacle of AI evolution — machines capable of creating new models, discovering laws, and generating questions, Yi Chengqi of the AI unit at the State Information Center's Big Data Development Department has explained. (South China Morning Post, October 21, 2025)

ONE CHINESE FIRM AIMS TO EXPAND AUTONOMOUS VAN FLEET...
Neolix Beijing Technology Co. has raised more than $600 million in financing, the most in China's rapidly growing autonomous driving sector. The company has 10,000 RoboVans deployed in 300 cities across 15 countries, including 1200 in Qingdao, Shandong. China's urban logistics market currently has 30 million delivery vehicles valued at over RMB 3 trillion ($420 billion). Within three years, Beijing, Shanghai, and Guangzhou are expected to see thousands of autonomous vehicles operating daily as part of an intelligent logistics network. Neolix has partnered with Abu Dhabi–based K2 Group to obtain the UAE's first RoboVan license. In July, the company agreed with the Incheon Metropolitan Government to promote RoboVan deployment in South Korea. Last month, the company joined Autoware, Japan's largest autonomous driving association. (Robot Report, October 24, 2025)

…WHILE ANOTHER DEBUTS HUMANOID CHILD
Another Beijing-based firm, Noetix Robotics, has introduced a "family-friendly" child-sized humanoid named Bumi for home use. Priced at 9988 yuan ($1,402), the robot stands 94cm (three feet) tall and weighs 12kg (26.4 lbs). China's robotics industry is racing to develop more affordable humanoid robots. Unitree Robotics introduced its R1 in late July, priced at 39,999 yuan – about 60 percent less than its $16,000 G1 model. Bumi signals the "entry of humanoid robots into the consumer market," merging scientific research with mass-market accessibility, Noetix said. With a runtime of one to two hours, the robot is equipped with a proprietary motion control system and algorithms, along with an open programming interface for learning. (South China Morning Post, October 23, 2025)

ECONOMIC TROUBLES PERSIST
Deflationary pressures are persisting in China amid a prolonged property market slump and as trade tensions with the U.S. and Europe weigh on investor and consumer confidence. Producer prices (PPI) in September fell 2.3% from a year earlier, narrowing from a 2.9% fall in August. The consumer price index (CPI) dipped 0.3% last month from a year earlier, after a 0.4% fall in August. Food prices fell 4.4% year-on-year, with pork prices tumbling 17% despite government calls for hog producers to cut output. A prolonged price war across several sectors has taken a toll on major automakers' bottom lines with factory-gate prices falling since October 2022. "We continue to expect both CPI and PPI to stay in deflation this year and next," says Zichun Huang, a China economist at Capital Economics. (Reuters, October 15, 2025)

BEIJING URGES VIGILANCE AGAINST "IRRATIONAL COMPETITION"
Li Lecheng, China's Minister of Industry and Information Technology (MIIT), has warned against "irrational competition," calling it a threat to business. "Cultivating industries and enterprises involves immense efforts, but irrational competition can destroy an enterprise or an industry overnight. We must never tolerate this to happen," Li said. Traditional industries like steel and cement have peaked and the old model of expansion based on "low prices and high volume" has become unsustainable, he added. Beijing wants to shift the focus of manufacturing from scale expansion to value creation, increasing the value-added proportion. China must enhance the quality and efficiency of its manufacturing supply system, Li said, emphasizing that "high-quality supply should create and lead demand." (China Daily, October 23, 2025)