China Regulator Warns AI Investment Boom Crowds Out Traditional Industries

Caixin Global · Wang Xiaoqing Published Nov 3 · 2026-11-03 00:00 UTC

Concentrated capital inflows are raising borrowing costs and debt risks for conventional businesses, Xiao Yuanqi says

Listen to the full version

Excessive global investment in AI is driving up borrowing costs for traditional industries and crowding them out of financing, a senior Chinese financial regulator warned Tuesday.

Xiao Yuanqi, a vice minister of the National Financial Regulatory Administration, made the remarks at the Global Financial Leaders’ Investment Summit in Hong Kong.

Read the full story at Caixin Global · All coverage of this story