As Xi Jinping visits Washington, Chinese economists warn that Beijing's heavy focus on AI comes at the expense of addressing a severe broader economic crisis (Li Yuan/New York Times)

Chinese economists say Beijing’s AI investment creates few jobs and overlooks a broader economic crisis. In 2025, more than 7 million one-person AI startups appeared amid a weak job market. They argue that AI focus, exemplified by DeepSeek’s use of Huawei chips, diverts resources from productive sectors. U.S. regulators propose an AI incident-notification rule. Amazon’s recent blocking of Meta’s Muse AI assistant has heightened tensions.