Chinese smartphone maker Honor has announced a $10 billion investment in AI over the next five years, aiming to expand into AI-powered computers, tablets, and wearables. The announcement, made at the Mobile World Congress (MWC) in Barcelona, aligns with Honor’s preparations for a public listing. Once a subsidiary of Huawei, Honor is now aggressively competing in China’s AI race with strong government backing.
However, this is not just a business move—it is part of the Chinese Communist Party’s (CCP) strategy to expand global technological influence, posing a significant challenge to U.S. innovation and security. The CCP has intensified its AI investments, integrating the technology into surveillance, cybersecurity, and military applications, raising concerns over data privacy, intellectual property theft, and geopolitical power shifts.
Additionally, Honor receives support from the Shenzhen local government, including research funding, tax incentives, and assistance in overseas expansion, demonstrating China’s state-backed efforts to dominate global markets. Meanwhile, Chinese AI firms like DeepSeek continue to attract massive investments, further underscoring Beijing’s ambition to surpass U.S. tech leadership.
As China’s AI sector rapidly grows, American companies and policymakers must remain vigilant. China’s AI strategy is not just commercial competition but a geopolitical power play. The U.S. must strengthen domestic AI innovation, secure supply chains, and implement policies to prevent China from monopolizing critical technologies. Failure to act now could jeopardize America’s technological future.
