China faces economic balancing act: AI and exports boom while consumers stay home

China's top leadership held two high-level meetings to address economic imbalances, aiming to sustain an AI and export boom while boosting domestic consumption. Premier Li Qiang chaired a State Council meeting pledging breakthroughs in AI and expanded commercial roll-out, while Wang Huning convened a separate meeting on forging a strong domestic market to spur demand.

China faces economic balancing act: AI and exports boom while consumers stay home Two high-level meetings show that Beijing is aware of economic imbalances as Politburo prepares high-stakes growth assessment next month boost consumption https://sc.mp/ivil8?utm source=copy-link&utm campaign=3356759&utm medium=share widget at home. The meetings were the latest sign that Beijing aimed to sustain the AI and export boom while also addressing macroeconomic weak links, said Larry Hu, Macquarie Group’s chief China economist. The top leadership was aware of the pronounced imbalance and even strains in the Chinese economy, where the divergence between sectors posed risks to achieving growth targets, he added. Premier Li Qiang https://sc.mp/dpuac?utm source=copy-link&utm campaign=3349707&utm medium=share widget chaired a State Council meeting which included a briefing on the latest AI developments. The meeting pledged to accelerate breakthroughs in AI https://sc.mp/wqxwd?utm source=copy-link&utm campaign=3358854&utm medium=share widget , vowed to build ultra-large computing clusters and promised to secure high-quality data and talent. It would also expand the commercial roll-out, relying on China’s advantages including a complete industrial system and diverse application context. On the issue of foreign trade, the meeting highlighted the importance of maintaining China’s trade momentum while calling for expanding imports. Wang Huning https://sc.mp/rtmf7?utm source=copy-link&utm campaign=3356993&utm medium=share widget , chairman of top political advisory body, the Chinese People’s Political Consultative Conference CPPCC , convened a separate meeting on forging a strong domestic market to spur demand, Xinhua reported. The meeting heard policy recommendations on boosting consumption and expanding investment, after a number of political parties and entities had conducted surveys and inspection trips across the nation. Specific issues discussed included a national unified energy market, urban-rural land reforms, expanding cultural consumption and enlarging the space for effective investment.