On February 11, 2026, President Xi Jinping toured a high-tech information technology park in Beijing, marking a definitive moment for the nation’s economic future. This was not merely a routine inspection; it was a loud signal to the world that China is entering a new era of “sovereign technology.” As the country launches its 15th Five-Year Plan (2026–2030), the message is clear: the days of relying on foreign components are over.
The New Long March for Self-Reliance
Standing before researchers and tech executives, President Xi emphasized that achieving total independence in science and technology is no longer just a goal—it is a national necessity. According to state-run media, Xi hailed technological strength as the “key in building China into a great modern socialist country.” He urged the industry to “concentrate strength for major undertakings” and to pool every available resource to secure breakthroughs in areas where China remains vulnerable to external pressure.
This shift in rhetoric reflects a transition from a reactive policy to a structural one. In previous years, China’s push for self-reliance was often seen as a response to U.S. sanctions and export controls. However, the 15th Five-Year Plan treats “tech sovereignty” as the cornerstone of national security. The era of the “global factory” is being replaced by the era of the “global laboratory,” where domestic innovation drives every level of the economy.
Strategic Priorities: AI, Quantum, and Chips
The 2026–2030 roadmap identifies three “frontier” sectors as the primary battlegrounds: semiconductors, quantum computing, and artificial intelligence (AI).
In the semiconductor industry, Beijing is moving beyond basic manufacturing to focus on “chokepoint” technologies—the high-end tools and software required to design the world’s most advanced chips. The goal is to close the “silicon gap” that has historically left Chinese firms dependent on Western intellectual property.
Simultaneously, the plan prioritizes Quantum Computing and AI, viewing them as the dual engines of the future. By integrating AI into industrial systems and governance, China aims to create what it calls “New Quality Productive Forces.” As one policy analyst noted during the recent Central Economic Work Conference, “China is no longer content to just use AI; it wants to define the very standards by which AI operates globally.”
A Milestone in Global Innovation
The timing of this pivot is bolstered by a significant milestone. For the first time, China has entered the Top 10 of the Global Innovation Index, a ranking published by the World Intellectual Property Organization. This achievement validates years of massive R&D spending, which exceeded 3.6 trillion yuan ($516 billion) in 2025 alone.
China now leads the world in international patent applications and high-impact scientific publications. However, this success comes with a price: the growing bifurcation of global technology. As China builds its own standards for 6G, data privacy, and AI ethics, the world is increasingly splitting into two distinct tech ecosystems—one led by Washington and the other by Beijing. This “digital iron curtain” means that software or hardware developed in one system may soon be entirely incompatible with the other.
The “Dual-Circulation” Challenge for Multinationals
For multinational corporations (MNCs), this strategic pivot creates an urgent and complex challenge. The Chinese government’s “Dual-Circulation” strategy—which focuses on domestic consumption (internal circulation) while remaining open to the world (external circulation)—demands a new business model.
To survive, foreign firms are adopting a strategy often called “In China, for China.” This involves decoupling their Chinese operations from their global supply chains. Companies like Apple, Tesla, and Siemens are increasingly localizing their R&D and data storage within China to comply with strict new regulations.
“We are moving toward a world of parallel universes,” says a senior trade consultant at a leading European firm. “If you want to play in the Chinese market, you must use Chinese standards, Chinese clouds, and Chinese chips. The era of the ‘global product’ is dying.”
The acceleration of tech decoupling marks a point of no return in the geopolitical landscape of 2026. By making technological self-reliance the heart of its 15th Five-Year Plan, China is signaling that it is prepared for a world of “dangerous storms,” as the policy documents describe it.
