Xi Jinping warns against China's overinvestment in EVs and AI

President Xi Jinping has criticized the nationwide rush of investment into the AI and electric vehicle (EV) industries in China. He questioned whether all provinces in the country need to develop these industries, expressing concerns about the increasing debt and the consequences that may be passed on to future generations. The article notes that despite Xi's warnings, there is no indication of China shifting its focus away from these sectors. China remains the global leader in the EV industry and is actively competing with the US in the robotaxi race. Additionally, the US government has recently granted NVIDIA permission to resume selling its AI chips to China, which was previously blocked over concerns of potential military use. The article highlights the growing deflation anxiety and the ongoing trade war between China and the US, which are driving China's push towards fast-growing tech industries to maintain its competitiveness. However, Xi's cautionary message suggests a potential shift in the government's approach to managing these investments and their long-term implications.