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China Wants AI Expansion Without an Investment Bubble

By Social Storytellers Collective News Desk

October 12, 2026 · 1 min read

China has issued new guidance calling for faster industrial use of artificial intelligence while warning officials against speculative investment and poorly coordinated development. The policy emphasizes research, domestic technological capacity, industrial pilot programs and safeguards for AI-related risks. It also encourages applications in manufacturing, connected vehicles and other emerging technologies. The combination reflects a challenge facing governments globally: accelerating adoption without allowing public subsidies and private capital to flood projects that cannot demonstrate durable value. Beijing’s guidance puts responsibility on officials to manage waste and avoid overlapping investments, even as it pushes technological self-sufficiency amid competition with the United States. Reuters detailed the new policy guidelines.