China vows to curb tech bubbles, keep AI risks in check

The new guidelines signal a dual focus for China's technology development: aggressive advancement in strategic sectors like AI, coupled with a push for more disciplined investment. President Xi Jinping's "new productive forces" concept, emphasizing scientific research and industrial upgrading, underpins this strategy. The policy outlines specific goals for AI, including breakthroughs in theory and core technologies, strengthened computing power, and the establishment of national pilot bases for industrial AI applications.

A key aspect of the policy is the "AI Plus" initiative, which aims to integrate AI into traditional industries and accelerate the rollout of intelligent products such as connected new-energy vehicles, AI-enabled devices, and humanoid robots. This initiative highlights a practical application of AI across China's manufacturing base, suggesting a broad push for technological integration rather than isolated development.

Simultaneously, the guidelines introduce measures to mitigate risks associated with rapid expansion, specifically warning against "blind investment," "excessive expansion," and "swarm-like" rushes into high-tech sectors. Officials are instructed to prioritize the real economy and avoid industrial hollowing-out, with accountability for losses caused by improper policy abuse. This suggests Beijing is attempting to balance its ambitions for technological leadership with concerns about economic stability and efficient resource allocation.