China's AI-driven Economic Policy Reform

Chinese scholars argue that the rapid scaling of generative AI, high‑performance computing and data algorithms is reshaping the underlying logic of the national economy. They identify five dimensions—growth, employment, inflation, trade and finance—where AI creates structural shocks, reduces cyclical volatility and introduces new digital‑asset price dynamics, rendering traditional monetary, fiscal and prudential tools less effective. The analysis calls for a transformation of the macro‑control framework, including new price anchors, financing channels for lightweight, technology‑intensive firms and policy instruments that can address cross‑border digital trade and capital flows.

A related study outlines the concept of an “intelligent economy” as the next stage of China’s digital economy. It describes a deep fusion of AI, data and computing that will reconfigure production functions, industry organization and public‑service delivery. The authors propose a roadmap involving new intelligent infrastructure, full‑scenario integration of factors, supportive policies and talent development, positioning the intelligent economy as a high‑quality growth engine for the country.