Chinese President Urges Caution on Investment in Electric Vehicles and Artificial Intelligence

Xi Jinping Warns Against Overinvestment in EVs and AI, Criticizes Hasty Development

In a surprise move, Chinese President Xi Jinping has cautioned the nation against overinvesting in electric vehicles (EVs) and artificial intelligence (AI), citing concerns over debt and unsustainable growth. The remarks were made during the Central Urban Work Conference in Beijing, where Xi emphasized the importance of responsible investment strategies.

Xi’s comments have sparked widespread attention, particularly given China’s aggressive push to dominate the global EV and AI markets. According to reports, the president expressed skepticism about the notion that every province in the country must prioritize the development of these industries. Instead, he urged officials to focus on long-term sustainability rather than short-term gains.

“Are we truly convinced that we need all provinces to develop industries in these directions?” Xi questioned during his speech. “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.”

The president’s remarks are significant, as they appear to be a departure from the government’s previous stance on EVs and AI. China has long been touted as a leader in these sectors, with NVIDIA recently being granted permission to resume selling its AI chips to the country.

Despite Xi’s warning, there is no indication that the Chinese government plans to reorient its focus away from these industries. In fact, recent developments suggest that China remains committed to its EV and AI ambitions. Uber has partnered with Baidu to integrate thousands of autonomous vehicles onto their platform in mainland China and other non-US markets.

The exact implications of Xi’s comments are unclear at this time, but it is clear that the president is seeking a more measured approach to investment in these areas. His words may have far-reaching consequences for the global EV and AI sectors, as China has historically played a significant role in shaping industry trends.

Source: www.engadget.com