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      Peking University Professor Warns AI Could Worsen China's Economic Imbalance

      At an economic forum in Beijing, Professor Huang Yiping from Peking University and a member of the Monetary Policy Committee of the People's Bank of China expressed concerns that the increasing deployment of artificial intelligence (AI) may exacerbate the existing economic imbalance in China, characterized by strong supply and weak demand. Huang indicated that as AI innovation accelerates, the disparity between total demand and total supply could persist for an extended period, complicating efforts to stabilize the economy.

      Huang urged for enhanced market-oriented reforms to allow for better resource allocation and suggested increasing the share of residents' income in the economy. He emphasized the importance of diversifying economic strategies by promoting deeper overseas investment and industrial cooperation, rather than relying solely on exports to drive growth.

      Additionally, Huang recommended that the Chinese central government consider increasing borrowing to support local governments, financial institutions, and enterprises. He warned that without restoring the capacity of these entities to engage in new economic activities, the effectiveness of any stimulus measures would be limited.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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