China Preps $295 Billion Plan to Fund Nationwide AI Buildout

China plans to spend about 2 trillion yuan (~$295B) over five years to build a nationwide network of data centers and link scattered facilities by 2028 to accelerate domestic AI development.
The program will rely on state operators (China Mobile/China Telecom) and local suppliers — aiming for ~80% domestic tech (e.g., Huawei) — and be funded largely by sovereign bonds and state funds (the total could reach ~5 trillion yuan if power-grid upgrades are included).
Markets reacted: Chinese data-center stocks jumped on the report, and the move intensifies the China–US AI rivalry by prioritizing homegrown chips and infrastructure over foreign vendors like Nvidia.