China warns against excessive investments in artificial intelligence!

China warns against excessive investments in artificial intelligence!

China has stressed the need to regulate excessive investment in the artificial intelligence (AI) sector. This request was made to avoid arbitrary competition and strengthen the national economy. Chang Kailin, an official at the National Development and Reform Commission, acknowledged a coordinated approach focused on leveraging regional advantages and avoiding duplication. The move is seen as crucial as China's manufacturing industry shrinks for the fifth straight month, highlighting pressure on the broader economy. Policymakers are eager to avoid past mistakes, such as overinvestment in electric vehicles.

President Xi Jinping has warned local governments against making ill-advised investments. Despite these warnings, the government is accelerating AI development and governance. A new action plan has been launched to strengthen the AI ​​sector. The government encourages the development of private companies and supports promising start-ups, with the aim of highlighting so-called “black horses” in the innovation race. This is based on successes such as the company DeepMind, which caused an international stir with its powerful AI model and is competing with American models. Chinese technology companies also plan to install over 115,000 Nvidia AI chips in data centers in desert regions of western China.

China's AI development strategy

The Chinese government views artificial intelligence as a national priority and promotes it through policy and financial resources. The importance of AI extends beyond economic success to include defense strengthening, cybersecurity and national security. The aim is to achieve technological leadership and increase economic performance. A development plan was published in 2017 that envisages establishing a global innovation center for AI by 2030. The AI ​​strategy is an integral part of the five-year plan from 2021 to 2025 and includes various initiatives, including the “AI+” initiative, which aims to link digital technologies with industrial strength and the internal market.

China's strategy includes comprehensive government planning, industrial cooperation, and the development of technical infrastructure and regulation. An innovation-friendly ecosystem supports national research platforms and collaboration with universities. These include renowned educational institutes such as Tsinghua and Beijing, which promote basic research and talented training. Public-private partnerships also play a critical role in developing talent and commercializing research results.

Regulation and social responsibility

In parallel with these developments, China is establishing a hierarchical and scenario-based regulatory system for digital technologies. This system is based on the Cybersecurity Act, the Data Security Act and the Personal Information Protection Act. Transitional rules for generative AI services have been in effect since 2023, requiring transparency and government supervision. A comprehensive AI law, included in the 2023 legislative plan, is currently being developed.

Pilot projects in cities like Shenzhen and Shanghai are regulating specific AI applications to ensure that technological innovation is combined with social responsibility. China is taking a leading role in the application of AI in enterprises, while international players such as Tesla and Microsoft are adapting their AI activities to the Chinese market. China's efforts in AI development could therefore become a key factor in the country's economic and technological future.