Xi Jinping warns against China's overinvestment in EVs and AI
But Xi appears to think that the strategy is flawed. As reported by the Financial Times , China's President sent out a pointed message about over-investment at the two-day Central Urban Work Conference in Beijing.
"When it comes to projects, there are a few things — artificial intelligence, computing power and new energy vehicles," he said in a speech that made the front page of the People's Daily , the official newspaper of the Communist Party. "Do all provinces in the country have to develop industries in these directions?"
The Financial Times reports that Xi went on to criticise officials who encourage hasty development but don't hang around to face the consequences. '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 told conference attendees. "We should not let some people pass the buck and leave problems to future generations."
For now though, there's no suggestion that China is shifting its focus away from the sectors Xi directly referenced. This week, NVIDIA was granted permission by the US government to resume selling its AI chips to China, with the company reportedly holding $8 billion in unshipped orders. It was initially blocked from selling the H20 AI GPU to China over concerns it could aid the nation's military.
China is the global leader of the EV industry, and the country is taking on the US in the robotaxi race too. It was announced this week that Uber is partnering with Baidu to bring thousands of the Chinese company's Apollo Go autonomous vehicles onto the Uber network in mainland China and other non-US markets.
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