Huang Yiping: AI may deepen the supply-demand imbalance in China

Professor Huang Yiping from Peking University and a member of the Monetary Policy Committee of the People's Bank of China stated at an economic forum in Beijing that artificial intelligence may deepen and prolong the imbalance of strong supply and weak demand in China. Huang Yiping said: As AI is more widely deployed and innovation accelerates, the imbalance of strong supply and weak demand may worsen, and the contradiction between total demand and total supply may not quickly disappear in the short term, and may even persist for a while.

Huang Yiping suggested that China should further promote market-oriented reforms, allowing the market to play a greater role in resource allocation, and increase the proportion of residents' income in the economy; at the same time, consider deepening overseas investment and industrial cooperation, rather than solely relying on exports. He also recommended that the central government increase borrowing to repair the balance sheets of local governments, financial institutions, and enterprises, stating that if the ability of these entities to engage in new economic activities is not restored, the effects of stimulus policies will be limited.