AsianFin – China is warning against excessive competition in its rapidly expanding artificial intelligence sector, signaling that Beijing aims to prevent redundant investments while still promoting AI as a cornerstone of economic growth.

The country’s top economic planner, the National Development and Reform Commission (NDRC), said it will encourage provinces to pursue AI development in a coordinated and complementary manner. According to Zhang Kailin, an NDRC official, the objective is to leverage regional strengths and foster sustainable growth without duplicating efforts.

The guidance reflects Beijing’s strategy to balance rapid technological advancement with resource efficiency, ensuring that the AI boom strengthens the economy rather than leading to fragmented and wasteful investment.

China has seen a surge in AI startups and major tech companies racing to deploy generative AI, large models, and industrial AI solutions, but authorities are increasingly emphasizing regulation and coordinated planning to maintain healthy industry development.

The NDRC’s comments come amid global attention on AI innovation, as China seeks to compete with the U.S. and other major players while managing domestic market stability and economic priorities.

By aligning provincial initiatives and preventing overlapping projects, China aims to build a more sustainable and competitive AI ecosystem, strengthening its position in emerging technologies while reducing unnecessary financial and resource strain.