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China aims to become world leader in AI, challenges U.S. dominance

* China unveils plan to become world leader in AI by 2025

* Aims to grow core AI industries to over 150 bln yuan by 2020 (Recasts, adds Lenovo CTO comments)

By Cate Cadell and Adam Jourdan

BEIJING/SHANGHAI, July 21 (Reuters) - China has outlined plans to become a world-leader in artificial intelligence by 2025, laying down a challenge to U.S. dominance in the sector amid heightened international tensions over military applications of the technology.

China released a national AI development plan late on Thursday, aiming to grow the country's core AI industries to over 150 billion yuan ($22.15 billion) by 2020 and 400 billion yuan ($59.07 billion) by 2025, the State Council said.

With this major push into AI, China is looking to rival U.S. market leaders such as Alphabet Inc's Google and Microsoft Corp, as it is keen not to be left behind in a technology that is...