China pours money into AI as youth joblessness rises, US-China trade deal will lower tariffs on US$30 billion in non-sensitive goods, and more...

China is investing heavily in AI, but economists question whether the technology can lift employment and consumer spending.

China is pouring resources into artificial intelligence while its domestic economy struggles to create jobs and sustain consumer spending.

Beijing has backed the industry through public funds, subsidies, procurement, and data center construction.

Bloomberg reported in June that officials were preparing a five-year plan worth about $295 billion for a nationwide AI computing network.

That proposal has not been announced as a finalized budget.

The scale of that ambition contrasts with weak demands at home.

Official data show unemployment among urban 16- to 24-year-olds, excluding students, reached 18.9% in August.

Domestic car sales fell about 20% in the first half of this year.

Even economists with ties to Chinese institutions are questioning whether a technology boom can lift its broader economy.

Tsinghua University economist Li Daokui says high-tech growth alone cannot support China's vast consumer market.

People's Bank of China advisor Huang Yiping warned this month that AI could deepen an existing imbalance where factories produce more while households buy very little.

He called for policies that strengthen consumption.

Economist Xu Chenggang raises another concern.

He argues that money directed toward AI may come at the expense of jobs and household demand, while automation could reduce need for workers.

Chinese netizens on the internet have called the investment drive an AI Great Leap Forward, invoking Mao-era campaigns to question whether resources are being misallocated.

Beijing's policies aim to modernize industries through AI.

The test now lies in whether that technological progress translates into employment, income, and stronger spending.

Joey Cho for RTI News.