Chinese analysts are skeptical about a viral report from Citrini Research suggesting that AI disruption will lead to mass unemployment and economic recession by 2028. They argue that China may be immune to such disruption due to the limited digital penetration in its traditional institutions. The report, titled “The 2028 Global Intelligence Crisis,” circulated widely among Chinese investors, raising concerns about potential left tail risks associated with AI developments. Xiao Lei, chief economist at Kasikornbank, noted that the recent sell-off on Wall Street reflects the fragility of US investor sentiment, highlighting a tendency to react explosively to fears surrounding AI. His analogy likened the market’s reaction to a strong man breaking down in tears over a trivial issue, suggesting that deeper emotional vulnerabilities are at play. This skepticism underscores the divergent views on AI and its economic impact in China versus the US, emphasizing the need for cautious investment strategies in the face of uncertainty.
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