People's Bank of China adviser warns AI could worsen supply-demand imbalance

Huang Yiping: Huang Yiping is a Chinese economist serving as a member of the People's Bank of China's monetary policy committee. He regularly contributes to discussions on economic policy, reforms, and structural issues facing China. In the reported statements, he warned that accelerating AI deployment could worsen and prolong imbalances between strong supply and weak demand in the economy. People's Bank of China: The People's Bank of China serves as the central bank of the People's Republic of China, overseeing monetary policy, financial regulation, and efforts to maintain economic stability. It advises on and implements measures to address domestic economic challenges including demand weakness and external pressures. In this development, one of its monetary policy committee members publicly addressed risks from artificial intelligence to China's supply-demand dynamics. Economic Policy: China's policymakers have been pursuing measures to revive domestic demand while facing pressures from a prolonged property downturn and local government debt challenges. Global AI Trends: A global AI boom has been supporting China's export performance and providing some cushion against weaker domestic conditions. International Relations: The United States and other trading partners have urged China to shift its economy toward greater reliance on consumption and reduce export dependence amid concerns over industrial capacity.