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Applied AI·May 31, 2026·1 min read

China just told its tech giants to stop fighting on price and start investing in AI

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Beijing telling platforms to stop price wars and pour into AI is industrial policy in plain language — margin from commerce is being redirected into model and infra capex. If you compete with Chinese platforms, assume their AI budgets are now politically underwritten and plan your own spend and partnership strategy accordingly.

Applied AI

AI adoption follows the J-curve path of general-purpose tech, like early US factory electrification, requiring years of investment before noticeable ROI gains (Exponential View)

If AI follows the electrification J-curve, your P&L will look worse before it looks better — the real returns show up only after you re-architect workflows, org design, and data plumbing, not after a few pilots. Treat 2026–2028 as infrastructure and process rewiring years, not as the period where AI line items must already be margin accretive.