China MIIT Minister Li Lecheng: Manufacturing Sectors Must Be Modernized with AI, Not Scrapped — Reaffirms Tech Self-Reliance as Trump-Xi Summit Aftermath Clarifies Post-Summit Tech Bifurcation

China's Minister of Industry and Information Technology (MIIT) Li Lecheng stated on May 16 that traditional manufacturing industries must be 'modernized with technology' rather than eliminated, reaffirming China's integrated manufacturing-AI strategy in the direct aftermath of the Trump-Xi summit's tech impasse. Bloomberg reported Li's statement as part of a broader government posture: China is not abandoning legacy industrial sectors in favor of pure high-tech — instead, it is injecting AI, robotics, and semiconductor-embedded intelligence into every layer of its manufacturing base, from automotive to industrial automation. This approach directly complements Beijing's response to the summit's failed chip deal: by deepening AI integration into manufacturing (and thus increasing domestic AI chip demand), China reduces strategic dependence on Nvidia H200 imports while simultaneously monetizing its domestic AI chip ecosystem (Huawei Ascend, SMIC, Hua Hong specialty fabs). The MIIT statement also signals continued investment in the domestic robot manufacturing sector — China's domestic industrial robot supplier share rose from 30% (2020) to 57% (2024) — and supports the MIIT's May 5 directive requiring 70% domestic silicon wafer use by end-2026. The post-summit narrative solidifying on May 16: US chip access offers (H200 cleared for 10 Chinese firms) have not translated into purchases; China's foundry sector (SMIC Q1 revenue $2.51B, Hua Hong $6B Wuxi bet) is accelerating regardless; and Beijing's industrial policy is deepening AI-manufacturing integration as the demand-side driver of the domestic chip ecosystem — a virtuous circle that the Trump-Xi summit's H200 impasse has, if anything, reinforced.