{"id":637660,"date":"2026-06-14T03:43:30","date_gmt":"2026-06-14T03:43:30","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/637660\/"},"modified":"2026-06-14T03:43:30","modified_gmt":"2026-06-14T03:43:30","slug":"as-chinas-economy-lumbers-amid-property-crisis-why-hasnt-ai-helped-pick-up-the-slack","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/637660\/","title":{"rendered":"As China\u2019s economy lumbers amid property crisis, why hasn\u2019t AI helped pick up the slack?"},"content":{"rendered":"

Unlike the US, artificial intelligence (AI) may not be a panacea for China\u2019s economy<\/a> amid its deep property crisis, as the technology can further widen the country\u2019s economic bifurcation, an economist said.<\/p>\n

\u201cAI isn\u2019t boosting China\u2019s economy as much [as it is in the US], and we also have to worry about some of the negative side effects,\u201d said Lu Ting, chief China economist at Nomura, at a media briefing in Beijing on Thursday.<\/p>\n

Currently, AI drives<\/a> about half of the US economy, Lu said, and its capital markets have mostly been propelled by the boom in the technology.<\/p>\n

US investment in AI has grown at roughly four times the pace of consumer spending, he added, showing that it had already made a massive impact on the world\u2019s largest economy.<\/p>\n

For China, the annual investment in AI<\/a> roughly exceeds one trillion yuan (US$147.82 billion) per year \u2013 still much less than the scale of property investment during the 2010s. The share of AI investment in China\u2019s overall economy is also much smaller, with the ratio only about one-third of that in the US, Lu said.<\/p>\n

\u201cThe US has well-developed capital markets, so it\u2019s easy for companies like OpenAI to raise money,\u201d he said. \u201cAnd even if we, in China, want to invest in, for example, buying chips in bulk, we don\u2019t have the means \u2013 [other countries] simply won\u2019t sell to us. We\u2019ve hit a major bottleneck here.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Unlike the US, artificial intelligence (AI) may not be a panacea for China\u2019s economy amid its deep property…\n","protected":false},"author":2,"featured_media":637661,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[554,5713,84,891,1294,591,20827,9798,874,5752,11998,12393,25915,56,54,55,741,43025,42387],"class_list":["post-637660","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-ai","tag-beijing","tag-business","tag-china","tag-economy","tag-europe","tag-hangzhou","tag-nomura","tag-openai","tag-shanghai","tag-south-korea","tag-taiwan","tag-tsmc","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-us","tag-world-bank","tag-zhejiang-province"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/637660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=637660"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/637660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/637661"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=637660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=637660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=637660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}