April Politburo Study Session on AI is bad news for Nvidia

The Politburo held its April study session on Friday. The theme, as conveyed by the CCTV News headline, was “uphold self-reliance and self-strengthening, maintain an application-oriented approach, and promote the healthy and orderly development of artificial intelligence 坚持自立自强 突出应用导向 推动人工智能健康有序发展.”

The discussant was Zheng Nanning 郑南宁 (IEEE profile), a professor at Xi'an Jiaotong University. Politburo member and CMC vice chairman He Weidong did not appear in the video from the meeting, in another sign that he is in trouble.

In this issue I have provided a full translation of the readout, but first will offer some highlights.

This section is why I say the meeting is more bad news for Nvidia in China:

Xi Jinping emphasized that to seize the initiative and gain the advantage in the AI field, breakthroughs must be achieved in fundamental theories, methods, tools, and more. We must continuously strengthen basic research, concentrate resources to overcome challenges in core technologies such as high-end chips and foundational software, and build an independent, controllable, and collaboratively functioning AI foundational hardware and software system [集中力量攻克高端芯片、基础软件等核心技术,构建自主可控、协同运行的人工智能基础软硬件系统]. We should use AI to lead a paradigm shift in scientific research and accelerate technological innovations and breakthroughs across various fields.

It is more good news for Huawei.

Xi wants AI to diffuse through the economy and society much faster:

Xi Jinping pointed out that China possesses rich data resources, a complete industrial system, broad application scenarios, and vast market space. We must promote deep integration of AI technological innovation and industrial innovation, build a collaborative innovation system driven by enterprises involving industry, academia, research, and application, support the transformation and upgrading of traditional industries, and open up new tracks for the development of strategic emerging industries and future industries. It is necessary to coordinate the construction of computing infrastructure and deepen the development, utilization, and open sharing of data resources.

The last paragraph of the readout reads like a smart response to the US draft AI Diffusion rule that splits the world’s countries into three tiers to allocate and restrict AI compute:

Xi Jinping emphasized that AI can become an international public good that benefits all humanity. We must vigorously engage in international cooperation on AI, help Global South countries enhance their technological capabilities, and contribute China's efforts toward bridging the global intelligence divide. Efforts should be made to promote greater alignment and coordination among all parties in terms of development strategies, governance rules, and technical standards, and to form a global governance framework and standards with extensive consensus as early as possible.

This meeting is more evidence that the US and China have reached the point of no return in building bifurcated AI systems, no matter how much the US might pull back on export controls.

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Here is the full readout, from CCTV Evening News - “习近平在中共中央政治局第二十次集体学习时强调 坚持自立自强 突出应用导向 推动人工智能健康有序发展 Xi Jinping emphasized during the twentieth collective study session of the CPC Central Committee Political Bureau: Uphold self-reliance and self-strengthening, maintain an application-oriented approach, and promote the healthy and orderly development of artificial intelligence”.

On the afternoon of April 25, the Political Bureau of the Communist Party of China (CPC) Central Committee held its twentieth collective study session on strengthening the development and regulation of artificial intelligence. Xi Jinping, General Secretary of the CPC Central Committee, emphasized while presiding over the study that in the face of the rapid evolution of new-generation AI technologies, it is essential to fully leverage the advantages of the new type of nationwide system, uphold self-reliance and self-strengthening, maintain an application-oriented approach, and promote the healthy and orderly development of AI in China in a beneficial, safe, and fair direction.

中共中央政治局4月25日下午就加强人工智能发展和监管进行第二十次集体学习。中共中央总书记习近平在主持学习时强调，面对新一代人工智能技术快速演进的新形势，要充分发挥新型举国体制优势，坚持自立自强，突出应用导向，推动我国人工智能朝着有益、安全、公平方向健康有序发展。

Comrade Zheng Nanning, professor at Xi'an Jiaotong University, provided an explanation on this topic and offered work recommendations. Members of the Political Bureau of the Central Committee attentively listened to the presentation and engaged in discussions.

西安交通大学教授郑南宁同志就这个问题进行讲解，提出工作建议。中央政治局的同志认真听取讲解，并进行了讨论。

After listening to the presentation and discussions, Xi Jinping delivered an important speech. He pointed out that artificial intelligence, as a strategic technology leading a new round of scientific and technological revolution and industrial transformation, is profoundly changing human production and lifestyles. The Party Central Committee attaches great importance to the development of AI. In recent years, it has improved top-level design, strengthened work deployment, and promoted an overall, systematic leap in China’s comprehensive AI capabilities. At the same time, shortcomings remain in areas such as fundamental theories and key core technologies. We must face these gaps squarely, redouble our efforts, comprehensively advance AI scientific innovation, industrial development, and empowered applications, improve the regulatory system and mechanisms for AI, and firmly grasp the initiative in AI development and governance.

习近平在听取讲解和讨论后发表重要讲话。他指出，人工智能作为引领新一轮科技革命和产业变革的战略性技术，深刻改变人类生产生活方式。党中央高度重视人工智能发展，近年来完善顶层设计、加强工作部署，推动我国人工智能综合实力整体性、系统性跃升。同时，在基础理论、关键核心技术等方面还存在短板弱项。要正视差距、加倍努力，全面推进人工智能科技创新、产业发展和赋能应用，完善人工智能监管体制机制，牢牢掌握人工智能发展和治理主动权。

Xi Jinping emphasized that to seize the initiative and gain the advantage in the AI field, breakthroughs must be achieved in fundamental theories, methods, tools, and more. We must continuously strengthen basic research, concentrate resources to overcome challenges in core technologies such as high-end chips and foundational software, and build an independent, controllable, and collaboratively functioning AI foundational hardware and software system. We should use AI to lead a paradigm shift in scientific research and accelerate technological innovations and breakthroughs across various fields.

习近平强调，人工智能领域要占领先机、赢得优势，必须在基础理论、方法、工具等方面取得突破。要持续加强基础研究，集中力量攻克高端芯片、基础软件等核心技术，构建自主可控、协同运行的人工智能基础软硬件系统。以人工智能引领科研范式变革，加速各领域科技创新突破。

Xi Jinping pointed out that China possesses rich data resources, a complete industrial system, broad application scenarios, and vast market space. We must promote deep integration of AI technological innovation and industrial innovation, build a collaborative innovation system driven by enterprises involving industry, academia, research, and application, support the transformation and upgrading of traditional industries, and open up new tracks for the development of strategic emerging industries and future industries. It is necessary to coordinate the construction of computing infrastructure and deepen the development, utilization, and open sharing of data resources.

习近平指出，我国数据资源丰富，产业体系完备，应用场景广阔，市场空间巨大。要推动人工智能科技创新与产业创新深度融合，构建企业主导的产学研用协同创新体系，助力传统产业改造升级，开辟战略性新兴产业和未来产业发展新赛道。统筹推进算力基础设施建设，深化数据资源开发利用和开放共享。

Xi Jinping emphasized that as a new technology and a new field, policy support is crucial for artificial intelligence. We must make comprehensive use of policies such as intellectual property rights, fiscal and tax incentives, government procurement, and open access to facilities, and make good use of science and technology finance. It is necessary to promote AI education across all levels of schooling and popular AI literacy education across society, continuously cultivating high-quality talent. We should improve mechanisms for supporting AI research, career development, and talent evaluation, creating platforms and conditions for various talents to demonstrate their abilities.

习近平强调，人工智能作为新技术新领域，政策支持很重要。要综合运用知识产权、财政税收、政府采购、设施开放等政策，做好科技金融文章。推进人工智能全学段教育和全社会通识教育，源源不断培养高素质人才。完善人工智能科研保障、职业支持和人才评价机制，为各类人才施展才华搭建平台、创造条件。

Xi Jinping pointed out that while AI brings unprecedented development opportunities, it also brings unprecedented risks and challenges. We must understand the development trends and patterns of AI, expedite the formulation and improvement of relevant laws, regulations, policy systems, application standards, and ethical guidelines, and build systems for technical monitoring, risk warning, and emergency response, ensuring that AI is safe, reliable, and controllable.

习近平指出，人工智能带来前所未有发展机遇，也带来前所未遇风险挑战。要把握人工智能发展趋势和规律，加紧制定完善相关法律法规、政策制度、应用规范、伦理准则，构建技术监测、风险预警、应急响应体系，确保人工智能安全、可靠、可控。

Xi Jinping emphasized that AI can become an international public good that benefits all humanity. We must vigorously engage in international cooperation on AI, help Global South countries enhance their technological capabilities, and contribute China's efforts toward bridging the global intelligence divide. Efforts should be made to promote greater alignment and coordination among all parties in terms of development strategies, governance rules, and technical standards, and to form a global governance framework and standards with extensive consensus as early as possible.

习近平强调，人工智能可以是造福人类的国际公共产品。要广泛开展人工智能国际合作，帮助全球南方国家加强技术能力建设，为弥合全球智能鸿沟作出中国贡献。推动各方加强发展战略、治理规则、技术标准的对接协调，早日形成具有广泛共识的全球治理框架和标准规范。