China seeks to enhance rare earth advantages, take 'extraordinary measures' to achieve semiconductor breakthroughs — new five-year plan marks doubling down on technological self-reliance

Source: Tom’s Hardware

Image credit: Getty

Draft 5‑Year Plan Overview

China has released a draft of its next five‑year plan, slated for approval at the National People’s Congress session from 5–12 March 2026. The plan outlines policies for 2026‑2030, responding to the ongoing trade war and technology rivalry with the United States. According to Nikkei Asia, the government is focused on insulating the country from international instability, noting that “the balance of international power is undergoing profound adjustments… security issues are becoming more prominent.”

Supply Chain and Rare‑Earth Strategy

Key policies in the draft include:

• Building a more robust “response mechanism” to enhance supply‑chain security.
• Strengthening “competitive advantages in rare earths.”

The United States has imposed export controls on critical technologies such as Nvidia’s and AMD’s latest AI chips and ASML’s photolithography machines. In response, Beijing now requires export licenses for rare‑earth materials, making it harder for tech companies and semiconductor manufacturers to obtain the minerals essential for high‑end chips. See the related coverage:

• Tom’s Hardware – China suspends ban on rare‑earth exports to US but licensing remains
• Tom’s Hardware – Chipmakers still suffering from rare‑earth shortages

R&D Investment and “Extraordinary Measures”

The plan calls for a 7 % or higher annual increase in domestic innovation investment, continuing the target set in the previous five‑year plan. It also pledges “extraordinary measures” in several strategic areas:

• Semiconductors
• Industrial machinery
• Advanced materials

Additional priorities include:

• Development of humanoid AI robots with integrated “brain and cerebrum” capabilities.
• Establishment of hundreds of vocational institutions to train workers for strategic industries such as artificial intelligence.

Implications for Technological Self‑Reliance

These policies signal Beijing’s intent to prioritize technology development over the next five years, aiming to decouple from U.S. supply chains and achieve greater independence by 2030 under the 15th five‑year plan. The emphasis on rare‑earth control, heightened R&D spending, and targeted “extraordinary measures” underscores a concerted effort to secure a competitive edge in the global tech arena.