BEIJING, March 9, 2026 — For the first time ever, this year’s Government Work Report included commitments to “develop new forms of the smart economy” and “initiate new infrastructure projects focused on hyperscale intelligent computing clusters and the coordinated advancement of computing power and power supply.” This strategic roadmap unlocks significant growth potential and establishes a solid base for a fresh surge in socioeconomic development.
Combining this year’s Government Work Report with two recent trends provides a more distinct understanding of China’s key competitive edge.
First, power equipment producers in Guangdong, Jiangsu, and other provinces are operating at maximum output. As global demand for computing power surges, nations worldwide are ramping up data center construction. China’s export orders for power equipment are increasing, aligning with investors’ observation: “AI ultimately relies on electricity.”
Second, between February 9 and 15 this year, the number of interactions with Chinese AI models hit 4.12 trillion tokens—surpassing the US for the first time. Developers globally have discovered that executing tasks on Chinese models is far more cost-effective than on their American counterparts.
AI’s power needs are projected to skyrocket. Exporting AI services is essentially a process of converting electricity into computing power, then computing power into intelligent outputs. The party with access to cheaper, more reliable electricity and a more responsive power grid will hold a cost edge in the AI age. This has led to another online saying: “Electricity’s ultimate advantage lies with China.”
On March 4, Wang Jian— a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and academician of the Chinese Academy of Engineering— noted in an interview that if the US intends to build a power plant, it must start with basic transformers, and “the transformer manufacturing sector is predominantly based in China.”
In a capital-focused energy system, no one is inclined to invest in long-term projects. When electricity supply is insufficient, prices are simply raised until demand drops because people can’t afford it. This purely capital-driven approach often harms ordinary citizens.
China is following an entirely different approach.
Take this statistic: In 2025, China’s total electricity consumption exceeded 10 trillion kilowatt-hours—ranking first globally and more than twice that of the US. In July and August 2025, monthly electricity use surpassed 1 trillion kWh for two straight months, a world record. Despite this, there were no power outages or price increases.
How does China achieve this?
China views electricity as a public good, guided by the principle of “inclusive benefit.” This vision is supported by 46 ultra-high-voltage transmission projects, which have established key corridors for west-to-east power transfer and north-south power distribution.
The “East Data, West Computing” initiative enhances this model by placing data centers in regions with abundant green energy. It converts western wind and solar energy into computing power, which is then transmitted globally through fiber-optic networks. Meanwhile, progress has been made in power reserve technologies, including million-kilowatt hydropower plants, advanced nuclear units, and heavy-duty gas turbines.
What’s truly impressive here isn’t just a single transmission line or power plant, but a system that can mobilize resources to execute large-scale projects.
China adopts a strategy of moderately forward-looking development—constructing transmission lines and power plants before shortages arise to meet future demands—and uses a nationwide coordinated approach to optimize resource allocation across regions.
At China’s annual Two Sessions, many deputies and political advisors focused on energy security. Their concerns extend beyond short-term power supply tightness to ensuring long-term sufficiency for the next 10 to 20 years.
Last month, the State Grid Corporation of China announced that its fixed asset investment for the 15th Five-Year Plan (2026-2030) is projected to reach 4 trillion yuan ($579.98 billion)—a 40% increase from the 14th Five-Year Plan (2021-2025). While other countries grapple with current power supply issues, China has already taken proactive steps to lay the groundwork for high-quality energy development.
SOURCE Global Times