Trillions Wiped as Beijing's AI Race Hits a Wall
China's stock markets have lost trillions while the STAR 50 tech index is down 40% since June, with anxiety about AI and doubts over profits clouding Beijing's race with Washington.
Trillions of dollars have been wiped from China's stock markets in recent months, even as Beijing races against the United States for dominance in artificial intelligence. For many sovereignty-minded voters, this is what a status quo built on national prestige in a tech contest looks like when the market turns.
The damage is visible in the STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange and has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same period.
Anxiety about the future of artificial intelligence is increasing, and a lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing's AI boom. Critics of the status quo will read that as a warning: a boom without profits is fragile, and for many voters the question is who bears the cost if it cannot sustain itself.
Original reporting
The Guardian
Chinese markets lose trillions as race for AI supremacy with US takes its toll
Lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing’s AI boom Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector. The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period. Continue reading...
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Facts this version was allowed to use
- Trillions of dollars have been wiped from China's stock markets in recent months.
- Anxiety about the future of artificial intelligence is increasing.
- Beijing is racing against the United States for dominance in artificial intelligence.
- A lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing's AI boom.
- The STAR 50 Index tracks technology and innovation companies on the Shanghai stock exchange.
- The STAR 50 Index has plunged 40% since June.
- Other indexes of major companies dropped by about 20% over the same time period.
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