KATHMANDU: Chinese President Xi Jinping has raised concerns over the country’s concentrated push into EVs, AI and computing power.
Speaking at a recent urban development meeting in Beijing, Xi questioned whether all provinces should continue investing heavily in these sectors, China’s official government portal reported.
“When it comes to new projects, it’s always the same few things: artificial intelligence, computing power, and new energy vehicles,” Xi said, pointing to a lack of diversification in industrial development.
The remarks mark a notable shift in tone from Beijing, which has traditionally defended its high-tech investments amid global criticism of overcapacity and aggressive exports.
Xi’s comments come as Chinese authorities seek to address “involution” a term describing excessive internal competition that leads to diminishing returns.
The issue is particularly visible in the EV market, where a fierce price war has raised concerns over sustainability.
In response, the Chinese government is promoting consolidation and cracking down on unhealthy practices like selling goods below production cost.
