China warns about excess competition in AI race

China said it will prevent excess competition in the red-hot artificial intelligence sector, a signal that Beijing wants to avoid wasteful investment even as it seeks to turn the technology into a key pillar of the economy.

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The country's top economic planner said the government will encourage provinces to develop AI in a coordinated and complementary way. The goal is to leverage their distinctive strengths to foster growth without duplicating efforts, according to Zhang Kailin, an official with the National Development and Reform Commission.

“We will resolutely avoid disorderly competition or a ‘follow-the-crowd’ approach,” Mr Zhang told reporters at a briefing Friday. Development should be based on local advantages, resources and industrial foundations, he said, expanding on an action plan published by the government earlier last week aimed at accelerating AI development.

His remarks echo Chinese President Xi Jinping’s caution against excessive local government investment in AI last month. The comments underscore policymakers' desire to avoid a repeat of the overcapacity seen in other emerging industries like electric vehicles, which has contributed to deflationary pressures.