China will take steps to prevent excessive competition in its AI industry while promoting coordinated regional growth.

The National Development and Reform Commission (NDRC) urged provinces to focus on their own strengths instead of duplicating AI efforts.

NDRC official Zhang Kailin said China seeks to avoid disorderly competition and overinvestment, echoing President Xi Jinping’s warnings.

Officials fear a repeat of the overcapacity issues seen in the electric vehicle sector, which has fueled deflationary pressures.

AI is a key growth sector in China’s rivalry with the US, with the government rolling out an action plan and supporting private sector involvement.

🔗 Source: Bloomberg