China Accelerates High-Stakes Tech Race with US, Boosts AI & Defense

• China unveils a five-year roadmap to turbocharge scientific breakthroughs and embed AI, making tech dominance a national security goal against the US.
• The plan prioritizes technology over consumption for development, aligning with President Xi Jinping's "new productive forces" vision to counter US export controls.
• Premier Li Qiang announced 7% increases in defense and R&D budgets, acknowledging economic imbalances and risks from property crisis and debt.
• Beijing set a slightly lower growth target of 4.5%-5% for 2026, after last year's 5% was met via a record $1.2 trillion trade surplus.
• China vows to maintain its competitive edge in rare earths, crucial for AI chips and defense, as the US remains reliant on its supply.