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Xi Jinping Warns Against China’s Overinvestment in EVs and AI
Chinese President Xi Jinping has sounded a warning about the country’s growing investment in electric vehicles (EVs) and artificial intelligence (AI), cautioning that such an overemphasis could have serious consequences. In a speech at the Central Urban Work Conference in Beijing, Xi emphasized the importance of responsible development, urging officials not to prioritize short-term gains over long-term sustainability.
As reported by the Financial Times, Xi questioned the need for every province in China to develop industries focused on AI, computing power, and new energy vehicles (NEVs). His comments come at a time when China is aggressively investing in these sectors, driven in part by concerns about deflation and the ongoing trade war with the United States.
Xi’s remarks were particularly noteworthy given the rapid growth of China’s EV industry. The country has become the global leader in this space, with numerous companies such as NIO, XPeng, and Li Auto driving innovation and expansion. Similarly, China is also gaining ground in AI research and development, with significant investments being made by both public and private entities.
However, Xi’s warning suggests that the Chinese government may be reevaluating its priorities in these areas. The President’s comments were particularly critical of officials who encourage hasty development without considering the long-term consequences, including the potential for unsustainable debt growth.
“We should not only focus on how much GDP has grown and how many major projects have been built, but also on how much debt is owed,” Xi emphasized during his speech. “We should not let some people pass the buck and leave problems to future generations.”
While it remains unclear whether Xi’s comments will lead to a significant shift in China’s investment strategy, they do underscore the importance of responsible development. As the world’s second-largest economy continues to navigate the challenges posed by trade tensions and economic uncertainty, such caution is well-advised.
In the meantime, the market appears to be taking Xi’s remarks in stride, with no indication that the Chinese government plans to alter its course on AI and EVs. In fact, just this week, NVIDIA was granted permission by the US government to resume selling its AI chips to China, following a brief hiatus due to concerns about the potential for military applications.
Moreover, China’s commitment to NEVs shows no signs of abating. A recent partnership between Uber and Baidu, announced earlier this week, underscores the country’s ambitions in autonomous vehicle technology. The agreement will see thousands of Apollo Go self-driving vehicles integrated into the Uber network across mainland China and other non-US markets.
For now, it appears that China’s investment in AI and EVs is here to stay.
Source: www.engadget.com
