Beijing seeks to curb excess AI investment while sustaining growth
Beijing’s planners want AI development aligned with local strengths to avoid duplication and wasteful competition.
China has pledged to rein in excessive competition in AI, signalling Beijing’s desire to avoid wasteful investment while keeping the technology central to its economic strategy.
The National Development and Reform Commission stated that provinces should develop AI in a coordinated manner, leveraging local strengths to prevent duplication and overlap. Officials in China emphasised the importance of orderly flows of talent, capital, and resources.
The move follows President Xi Jinping’s warnings about unchecked local investment. Authorities aim to prevent overcapacity problems, such as those seen in electric vehicles, which have fueled deflationary pressures in other industries.
While global investment in data centres has surged, Beijing is adopting a calibrated approach. The state also vowed stronger national planning and support for private firms, aiming to nurture new domestic leaders in AI.
At the same time, policymakers are pushing to attract private capital into traditional sectors, while considering more central spending on social projects to ease local government debt burdens and stimulate long-term consumption.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
