China’s AI makes a great leap forward. But its economy is falling behind

Li YuanNew York Times·21 Sep, 2026 12:23 AM6 mins to readEconomists in China – even those closest to the state – have openly warned that the government is pouring too many resources into a technology that creates relatively few jobs, while doing too little to save the broader economy. Illustration / Dongyan Xu, The New York TimesAs Xi Jinping arrives in the US this week for a state visit, China’s advances in artificial intelligence will be in the air. Less discussed: China’s economy in its worst shape in decades.“The US Lead Over China in AI Is All But Gone.”“China Is AI-Maxxing.” “China Just Erased