The contradiction between the excessive proliferation of AI companies and subsidy-dependent industrial development is being examined, along with China's manufacturing capacity and the supply-demand gap. Funding support for priority areas, including semiconductors, under the 15th Five-Year Plan is also a focus.
China's strengthening of subsidies and policy support is said to be behind the growth of industries such as AI development. At the same time, concerns have been raised that expanding production capacity dependent on subsidies could lead to falling prices and deteriorating profits, making it a challenge to balance technological development with commercialization.
The article cites the example of U.S. iRobot, which makes Roomba, experiencing financial deterioration amid intensifying competition from Chinese companies, filing for Chapter 11 bankruptcy protection in December 2025 and completing restructuring proceedings in January 2026. This is also portrayed as an example of the risks of an industrial model reliant on subsidies.
The semiconductor industry, including integrated circuits, is identified as a priority industry under the 15th Five-Year Plan, and the view is presented that stable funding will determine companies' technological development and commercialization. While the use of subsidies can provide a strong tailwind, it has also been pointed out that some cases produce no corresponding results in practice.
Competition in the AI sector is portrayed as a case in which both funding flows and market acceptance, as well as technological capabilities, have an impact. The article raises the issue that whether companies can sustain research and development investment will determine their future growth potential.