China NDRC: to promote smart device adoption, innovate AI terminal consumption subsidy methods

China NDRC: to promote smart device adoption, innovate AI terminal consumption subsidy methods

In a strategic move to bolster the adoption of smart devices and foster innovation in AI terminal consumption, the National Development and Reform Commission (NDRC) of China has announced plans to introduce new subsidy methods for AI-related products. This initiative aims to promote the growth of the AI sector while ensuring sustainable development and resource optimization.

The NDRC's latest policy announcement, reported by Bloomberg, underscores the importance of AI as a key economic pillar for China. The commission has emphasized the need for coordinated development across provinces, leveraging local strengths and avoiding wasteful duplication of efforts [1]. This approach is intended to prevent the overcapacity seen in other emerging industries, such as electric vehicles, which has contributed to deflationary pressures.

The new subsidy methods for AI terminal consumption are expected to incentivize both public and private investment in the sector. By providing financial support for innovative AI products, the NDRC aims to stimulate market demand and encourage the development of cutting-edge technologies. This initiative aligns with China's broader strategy to compete with the United States in the global AI landscape.

The AI market in 2025 has shown a sharp contrast between execution leaders and laggards. Companies like Nvidia, which have demonstrated strong execution in AI strategies, have seen significant gains, while those struggling with execution, like Marvell, have faced investor skepticism despite revenue growth [2]. This market differentiation highlights the importance of strategic execution over mere investment in AI technologies.

The NDRC's new policy is part of a broader effort to promote private investment in traditional industries as well. The commission has announced plans to set minimum private shareholding requirements for major national infrastructure projects, including railways, nuclear power, and oil pipelines. This move aims to broaden private investor access to major national ventures and bolster overall economic growth.

As China continues to push AI as a critical growth driver, the NDRC's new subsidy methods for AI terminal consumption are set to play a pivotal role in shaping the future of the sector. By promoting innovation and strategic execution, these policies aim to create a more sustainable and competitive AI ecosystem in China.

References:
[1] https://www.indexbox.io/blog/china-curbing-ai-sector-excess-competition-ndrc-announces/
[2] https://www.ainvest.com/news/ai-premium-market-rewards-strategic-ai-adoption-penalizes-laggards-2508-38/