China launches 'AI+' plan to create 2 new service models

China’s technology ministry is launching a special “AI + Software” action plan designed to accelerate the country’s development of intelligent programming and create new AI-native business models, a direct response to escalating tech rivalry with the US.

"We will launch a special 'AI + Software' action to accelerate the R&D and application of intelligent programming," Ke Jixin, Vice Minister of the Ministry of Industry and Information Technology (MIIT), said at a State Council policy briefing on April 28.

The plan will focus on cultivating "Model-as-a-Service" and "Agent-as-a-Service" as new business formats. It also aims to strengthen China's open-source ecosystem and drive the intelligent upgrade of foundational and industrial software, supported by a buildout of the nation's computing and data infrastructure.

The initiative comes just one day after Chinese regulators formally blocked Meta Platforms Inc.'s $2 billion acquisition of the Chinese-founded AI startup Manus, citing national security. The move, which forces Meta to unwind the deal, highlights the intense US-China competition in AI and underscores Beijing's strategy to foster a self-sufficient domestic AI industry.

New Service Models at the Forefront

The core of the MIIT's new strategy is the explicit push to create "Model-as-a-Service" (MaaS) and "Agent-as-a-Service" (AaaS) offerings. This signals a move up the value chain from simply building large language models to creating a commercial layer of accessible, deployable AI services that can be integrated into enterprise workflows. The focus on "intelligent agents" mirrors the technology developed by Manus, which used multiple AI agents to perform complex tasks for users and was a key reason for Meta's acquisition interest.

Industrial Upgrade and Data Infrastructure

Beyond new service models, the plan emphasizes the intelligent upgrade of industrial software. This is a critical component of Beijing's long-term goal to digitize its vast manufacturing sector. The ministry plans to establish a robust service system for this digital transformation and will launch an "Industrial Data Foundation" initiative to build high-quality datasets for training industrial AI models. This will be supported by the "orderly promotion" of computing power layout and the construction of edge computing facilities.

The push for a domestic software ecosystem is a direct consequence of the growing technology decoupling between the US and China. The unwinding of the Meta-Manus deal is a case in point. Manus, founded by Chinese entrepreneurs, had attempted to re-establish itself outside of China via Singapore to avoid such a scenario, a strategy that ultimately failed. The incident shows the dimming prospects for Chinese tech founders trying to pivot to the US tech scene and reinforces Beijing's rationale for building an independent ecosystem, even if it means losing access to Western models like Anthropic's Claude, which Manus used.

For investors, the "AI + Software" policy is expected to be a significant tailwind for Chinese companies in the AI, cloud computing, and industrial software sectors. The policy likely signals a wave of government contracts, subsidies, and a favorable regulatory environment. This could boost stock prices and investment in related A-share companies specializing in AI models, enterprise software, and data center infrastructure as China seeks to nurture its own champions to compete with global giants like Nvidia and Meta.

This article is for informational purposes only and does not constitute investment advice.