China's AI boom creates a two‑speed economy

China's rapid expansion of artificial‑intelligence technologies is deepening a split between fast‑growing high‑tech sectors and lagging traditional industries. The state‑run magazine Qiushi notes that while the country's GDP rose 4.7 % in the first half of the year, meeting the government's 4.5‑5 % growth target, the benefits are uneven. Industrial profits rose 18.7 % overall, but profits in the electronics sector – driven by demand for computing power, servers, semiconductors and AI infrastructure – surged 96.9 %, accounting for 8.5 percentage points of total profit growth. In contrast, profits in generic machinery, agriculture, food processing and automotive manufacturing fell by double‑digit percentages, showing that a small, high‑tech segment is accelerating while a much larger part of the economy moves slowly or contracts.

The analysis warns that the AI‑driven growth does not automatically translate into higher incomes, employment or better prospects for most families and firms, creating a perception of a “two‑speed” economy where the macro‑level GDP figures mask divergent experiences across sectors.