China’s President Xi Jinping has issued a blunt warning about the country’s rapid investment in high-priority industries, such as artificial intelligence (AI) and electric vehicles (EVs). While China is pushing these sectors to stay competitive amid economic pressures, Xi seems to believe the strategy has gone too far.
Speaking at a major conference in Beijing, Xi directly questioned the wisdom of a nationwide “gold rush.” In a speech that made the front page of the Communist Party’s official newspaper, he asked, “When it comes to projects, there are a few things — artificial intelligence, computing power, and new energy vehicles. Do all provinces in the country have to develop industries in these directions?”
He didn’t stop there. According to the Financial Times, Xi criticized local officials who pursue flashy projects to inflate economic numbers without considering their long-term consequences. “We should not only focus on how much GDP has grown… but also on how much debt is owed,” Xi said, warning officials not to “pass the buck and leave problems to future generations.”
This warning comes as China faces concerns about deflation and a looming trade war with the U.S., forcing it to rely on technology for growth.
Despite the president’s cautionary tone, there’s no sign that China is hitting the brakes. Just this week, the U.S. government permitted NVIDIA to resume selling its powerful AI chips to China, with a backlog of orders reportedly worth $8 billion.
Furthermore, China remains the world’s leader in the EV industry. In another sign of its tech dominance, Uber just announced a partnership with Chinese tech giant Baidu to bring thousands of its self-driving robotaxis to the Uber network in China and other markets. Xi may be worried, but for now, the tech boom continues at full speed.
