(Yicai) March 5 -- China’s 2025 Government Work Report, which was released at the opening of the third session of the 14th National People’s Congress today, included terms such as ‘opening the internet in an orderly manner,’ ‘sixth-generation mobile network’ and ‘embodied artificial intelligence’ for the first time.

The Government Work Report called for the fostering of emerging sectors like embodied AI, 6G, bio-manufacturing and quantum technology, and the creation of a growth mechanism for future industries. It unveiled plans to push for the development of next-generation smart terminals such as intelligent connected new energy vehicles, AI-powered smartphones and computers, smart robots, and intelligent manufacturing equipment.

The mention of embodied AI in the Government Work Report for the first time was very forward-looking, said He Xiaopeng, a NPC member and chairman of electric car startup Xpeng Motors. He compared the development of China’s humanoid robot and embodied AI industries to the early days of the country’s NEV sector over a decade ago.

The formation of laws and regulations play a crucial role in the preliminary phases, He said. Like NEVs, China’s embodied AI sector will grow into a massive industry within the next five to 15 years, becoming an industry leader both at home and abroad.

The report outlined plans to expand pilot projects for opening up the service sector, including the internet and cultural sectors, and to increase trials in areas such as telecommunications, healthcare, and education.

Encouraging foreign investment and promoting the orderly opening of the internet sector could boost cross-border trade, helping China’s manufacturing and services industries to identify new target markets, Pan Helin, a member of the expert committee for information and communication economy under the Ministry of Industry and Information Technology, told Yicai. This might give sectors like cross-border e-commerce fresh opportunities.

The report also proposed city-specific policies on easing property purchase curbs for the first time, intensifying efforts to renovate urban villages and dilapidated buildings, while fully unlocking the potential of rigid and upgraded housing demand.

To ensure an uptick in demand for residential housing, there is still room to adjust curbs like purchase restrictions, down payment ratios, sales limits, provident funds loans and interest rates, according to EH Consulting. The market is anticipating the relaxation of restrictions in core cities. Meanwhile, there is still room for existing mortgage rates to come down further.

The report also called for more funds and resources to be invested in people and suggested supporting certain regions in developing new types of offshore trade models. It also proposed fostering unicorns, which are firms with a valuation of over USD1 billion, and gazelle or high-growth companies. These measures will allow more businesses to make breakthroughs in emerging fields and innovative sectors.

Editor: Kim Taylor