Shanghai unveils US$10 billion investment spree as US-China tech race heats up

Shanghai has announced a slew of new investments in hi-tech industries ranging from chips to artificial intelligence (AI) and aviation, becoming the latest Chinese city to unveil ambitious plans to boost local innovation amid an intensifying US-China tech race.

The city’s Pudong district unveiled 50 big-ticket projects worth more than 70 billion yuan (US$10 billion) combined on Monday, with most of the investment earmarked to flow into key industries including microchips, AI, biopharmaceuticals, smart vehicles and aviation, among others, local media reported.

The exact funding sources for the projects have not been specified.

Pudong, for instance, has set the goal of developing a chip industry with an annual economic output surpassing 500 billion yuan by 2030, as well as AI and aircraft manufacturing industries with outputs of over 200 billion yuan and 100 billion yuan, respectively.

Shanghai will play an important role in China’s plans as the world’s second-largest economy confronts a high-stakes tech race with the United States, according to Fu Weigang, president of the Shanghai Institute of Finance and Law think tank.