China Seeks to Curb AI Investment Bubbles While Expanding Advanced Technology

BEIJING — China has issued new policy guidelines aimed at accelerating the development of artificial intelligence and other advanced technologies while preventing speculative investment and strengthening risk controls.

The guidelines, issued by the Communist Party and the State Council, emphasize technological self-reliance, industrial upgrading and the application of new technologies across the economy, according to Reuters.

The policy promotes the integration of artificial intelligence into traditional industries through the country's "AI Plus" initiative. Potential applications include connected electric vehicles, AI-powered consumer electronics and humanoid robots, as well as industrial systems designed to improve productivity.

Authorities also intend to support AI research, strengthen technology infrastructure and establish pilot bases for industrial AI applications. The guidelines call for safety and risk-control systems to accompany the development and deployment of the technology.

At the same time, the document warns against speculative bubbles and excessive investment concentrated in the same high-tech sectors. Officials are expected to guard against poorly coordinated projects and hold decision-makers accountable for mismanagement.

The approach highlights a central challenge for China's technology strategy: expanding domestic innovation while ensuring that investment produces commercially useful technologies rather than excess capacity or short-lived market enthusiasm.

Artificial intelligence has become a major focus of competition among global technology companies and governments. China is seeking to strengthen its domestic technology capabilities and expand AI adoption across manufacturing, services and consumer products.

The guidelines also address other emerging industries, including the low-altitude economy, which encompasses civilian drones and potential air-taxi services. Regulators are expected to balance the development of these industries with safety requirements.

The policy does not, by itself, establish the commercial success of individual AI companies or guarantee that new investment will generate productivity gains. Its impact will depend on implementation, research outcomes and the ability of businesses to turn technological advances into sustainable applications.

For companies and investors, the guidance signals continued government support for strategic technologies alongside closer attention to investment discipline and operational risks.