Chinese Premier Li Qiang on Tuesday, 23 September 2026, called for deeper integration of artificial intelligence and industrial production during a visit to an AI application testing base in Shanghai, signalling Beijing's intensifying push to leverage digital technologies as global tech competition escalates.

The Directive from the Top

Premier Li urged the country to 'combine China's strengths in manufacturing and digital technologies,' according to state news agency Xinhua. The remarks were made during an on-site inspection that underscored the leadership's hands-on approach to steering industrial policy at a time when advanced manufacturing has become a strategic priority.

Why It Matters

The call is not an isolated statement — it follows President Xi Jinping's directive last week to make China's supply chains more resilient and self-sufficient while accelerating the development of a modern industrial system underpinned by advanced manufacturing. Together, the two statements from the country's top two leaders within a single week reflect a coordinated policy push rather than routine rhetoric. The timing is significant: global competition over semiconductors, industrial software, and AI-driven automation has intensified sharply through 2026.

Platforms for Small and Medium Enterprises

Premier Li specifically called for the creation of more manufacturing service platforms covering areas such as industrial design, pilot testing, and intelligent maintenance. The explicit focus on small and medium-sized firms is notable — it signals that Beijing wants AI-driven industrial upgrades to permeate beyond large state-owned enterprises and reach the broader manufacturing base that forms the backbone of China's export economy. Lowering the cost and complexity of technology adoption for these firms is seen as critical to sustaining competitiveness.

The Competitive Backdrop

China's manufacturing sector faces mounting pressure from reshoring initiatives in the United States and Europe, as well as rising competition from lower-cost producers in Southeast Asia. Beijing's answer has consistently been to move up the value chain through automation and AI integration — a strategy now being reinforced at the highest political levels. The emphasis on 'intelligent maintenance' and 'pilot testing' platforms also points toward an ambition to build domestic industrial software ecosystems that reduce reliance on foreign technology stacks.

What's Next

Policy watchers will be closely monitoring whether Premier Li's Shanghai visit translates into concrete fiscal incentives or regulatory frameworks targeting AI-manufacturing convergence in the coming months. Companies operating in industrial automation, edge AI, and manufacturing execution systems — both domestic and foreign — are most directly exposed to the policy direction being set in Beijing.