• China warns against AI investment and poorly planned projects.
• Industrial AI China plans to expand industrial AI through pilot facilities and computing infrastructure.

China has introduced new guidelines aimed at preventing excessive investment in emerging technologies while expanding the use of AI across industries. The measures also call for stronger oversight of AI development and greater accountability for poorly planned technology projects.

Issued by the Communist Party of China Central Committee and the State Council on October 9, the guidelines outline 19 measures covering scientific research, industrial development, investment, regulation, and workforce development. They form part of China’s efforts to develop what it calls “new quality productive forces,” which include AI and other advanced technologies.

Curbing excessive investment in emerging technologies

The guidelines warn against speculative investment and poorly planned expansion into emerging industries. Local authorities are instructed to avoid investment bubbles and develop technology projects according to regional resources and industrial capabilities.

The National Development and Reform Commission (NDRC) said some local governments have pursued similar emerging technology projects without considering their industrial strengths. It also identified cases where authorities prioritised new industries while overlooking upgrades to existing sectors.

In an official explanation published on October 9, the NDRC warned against repetitive industrial construction, poorly planned investment, and excessive spending to attract projects. The agency called for greater coordination between regions to prevent duplicated investment and unnecessary competition.

The guidelines also call for officials to be held accountable when poorly planned projects or reckless investment result in major losses. They prohibit the misuse of government policies under the justification of developing new productive forces.

Despite the warnings, Beijing intends to maintain financial support for technology development. The measures encourage angel investment, venture capital, private equity, and government-backed investment funds to support early-stage technology companies.

Financial institutions are also encouraged to develop lending products suited to technology businesses. The guidelines include measures to expand financing through technology-related bonds, stock market listings, and other funding arrangements.

Expanding industrial AI adoption

Alongside investment oversight, the government plans to expand AI adoption through its “AI Plus” initiative. The programme focuses on integrating AI into traditional industries and supporting its use across manufacturing and other sectors.

The NDRC said the initiative will support emerging industries alongside upgrades to traditional manufacturing. The agency also warned against prioritising new technologies at the expense of improving established industries.

The guidelines call for the development of AI-enabled products and applications, including intelligent connected electric vehicles, AI smartphones and computers, and humanoid robots.

The government also plans to support manufacturers adopting digital and intelligent technologies. Industries identified for upgrading include machinery, chemicals, textiles, and shipbuilding.

To support industrial adoption, the guidelines call for national AI industry application pilot bases tailored to different sectors. These facilities will support the testing of AI technologies and the development of applications for industrial use.

Separate proof-of-concept and pilot-testing platforms are also planned to help commercialise research across emerging technologies. The guidelines propose assessing research projects partly on their practical applications and the results achieved.

Universities and research institutions are encouraged to license research results to small, medium, and micro enterprises through arrangements that allow businesses to use technologies before making payment. The measures also call for closer cooperation between research organisations and companies developing commercial applications.

According to the NDRC, expanding industrial AI adoption will require further development of foundational research, core technologies, and supporting software and hardware systems. The agency also identified computing infrastructure, data availability, and coordination between research and industry as priorities.

The guidelines call for improvements to national data infrastructure and the development of an integrated computing network. Under AI Plus, the government plans to strengthen the supply of computing power, algorithms, and data for industrial applications.

The measures also include continued implementation of China’s East Data, West Computing initiative, which aims to coordinate computing resources between the country’s eastern and western regions.

Private enterprises are expected to play a greater role in technology development. The government plans to encourage smaller technology companies to increase research spending and allow qualified private businesses to lead major national technology research projects.

Tightening AI safety and regulatory oversight

The guidelines call for technology monitoring, early-warning, and emergency-response systems to strengthen AI oversight. These measures are intended to support the safe and reliable development and use of AI technologies.

The NDRC said expanding AI applications also requires improvements to relevant laws, regulations, application guidelines, and ethical standards. The agency identified technology monitoring and risk management as part of the government’s approach to AI development. The NDRC also outlined a broader regulatory approach covering emerging technologies and industries. Under this approach, authorities will be able to introduce observation periods for technologies with uncertain development prospects and apply stricter oversight to activities carrying higher risks.

The agency also called for pilot programmes to test new regulatory methods before introducing them more widely. Regulatory requirements would vary according to the characteristics and risks of different technologies rather than applying identical measures across industries.

The guidelines further call for stronger governance of AI and biotechnology, improved coordination between regulatory agencies, and stricter enforcement against monopolistic practices and unfair competition.

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