This report is from this week's CNBC's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. Like what you see? You can subscribe here.

The big story

China is taking a lean and mean approach to artificial intelligence as the tech rivalry with the U.S. intensifies.

In the U.S., companies and policymakers are chasing massive investments. OpenAI has warned it will need $115 billion through 2029 , while Washington has made splashy announcements — including billions of dollars in domestic pledges by Apple and Meta.

Beijing, in contrast, is spending less and focusing on practical use cases. At the start of the year, Beijing discreetly launched a 60.06 billion yuan ($8.42 billion) national AI fund, and in recent wee

See Full Page