Xi Jinping warns against China's overinvestment in EVs and AI
But Xi appears to think that the strategy is flawed. As reported by the Financial Times , China's President sent out a pointed message about over-investment at the two-day Central Urban Work Conference in Beijing.
"When it comes to projects, there are a few things — artificial intelligence, computing power and new energy vehicles," he said in a speech that made the front page of the People's Daily , the official newspaper of the Communist Party. "Do all provinces in the country have to develop industries in these directions?"
The Financial Times reports that Xi went on to criticise officials who encourage hasty development but don't hang around to face the consequences. 'We should not only focus on how much GDP has grown and how many major projects have been built, but also on how much debt is owed,' Xi told conference attendees. "We should not let some people pass the buck and leave problems to future generations."
For now though, there's no suggestion that China is shifting its focus away from the sectors Xi directly referenced. This week, NVIDIA was granted permission by the US government to resume selling its AI chips to China, with the company reportedly holding $8 billion in unshipped orders. It was initially blocked from selling the H20 AI GPU to China over concerns it could aid the nation's military.
China is the global leader of the EV industry, and the country is taking on the US in the robotaxi race too. It was announced this week that Uber is partnering with Baidu to bring thousands of the Chinese company's Apollo Go autonomous vehicles onto the Uber network in mainland China and other non-US markets.
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First, this parade is not a symbol of peace, but a strategic challenge to U.S.-Led Global Order. The Chinese Communist Party is not holding this parade merely to commemorate a historic victory. It is a deliberate display of military strength, aimed at projecting the narrative of Communist Party superiority and signaling strategic rivalry with the U.S. Since 2015, the party has increasingly normalized large-scale military parades. Domestically, they glorify one-party rule; internationally, they serve as a geopolitical tool to intimidate neighbors. By showcasing hypersonic missiles, fifth-generation fighter jets and long-range nuclear strike capabilities, these parades are clearly targeted at undermining the leadership of the U.S. and the free world. The Xi regime's invitation to Trump is a calculated effort to present China as America's equal on the global stage — conveying a vision of 'co-governance of the world.' 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There is no historical ambiguity regarding who bore the brunt of Japan's invasion during World War II. Following the outbreak of the Pacific War in 1941, China became the principal theater of war in Asia. The Republic of China under Chiang Kai-shek's leadership conducted over 90 percent of the major battles and suffered the bulk of casualties. In contrast, the Communist Party operated largely in guerrilla warfare behind enemy lines, focused more on consolidating its own strength than on resisting Japan strategically. It was the Nationalist government's sacrifices that initially earned the Republic of China a permanent seat on the U.N. Security Council. Even after its retreat to Taiwan in 1949 following the civil war, the U.N. continued to recognize the Republic of China for nearly two more decades — underscoring its historical legitimacy. After consolidating power, the Chinese Communist Party eliminated many of the generals and troops who had genuinely resisted Japan. Now, Beijing stages military parades as if it had been the actual victor, mocking the true heroes of World War II and engaging in historical theft of valor. If Trump were to attend, it would risk signaling U.S. endorsement of this manipulated narrative, creating the impression that America has accepted the Chinese Communist Party's version of history. Third, this parade dishonors fallen American soldiers from the Korean War. During World War II, the U.S. provided significant aid to China's anti-Japanese efforts. Yet less than five years later, the Chinese communists sent over 1 million troops across the Yalu River to directly engage U.S.-led United Nations forces in the Korean War. The Chinese Communist Party's support for the Kim regime in North Korea was part of its strategy to establish regional dominance in East Asia. More than 36,000 American soldiers died in the Korean War, and over 100,000 were wounded. Even today, many American families continue to grieve the loss of loved ones. The U.S. has always deeply honored its veterans and war dead — building monuments, museums and preserving their legacy in public memory. For a U.S. president to attend this parade would amount to public recognition of the very military that opened fire on American troops. Trump understands the profound sacrifice of military service. He must also be made to understand that attending this parade could deeply wound the families and descendants of the fallen. Finally, sharing a platform with Putin and Xi could send the wrong signal to the free world. Reports suggest that, because Xi attended Russia's 80th anniversary parade for the Great Patriotic War in Moscow this last May, Russian President Vladimir Putin will return the favor by attending China's parade in September. Both men are now seen across the free world as symbols of authoritarian expansionism. Putin has invaded Ukraine and constantly threatens Europe. Xi, meanwhile, has escalated provocations in the South China Sea and around Taiwan, suppressed freedoms in Hong Kong and continues the persecution of ethnic minorities in Xinjiang and Tibet. His regime that is both militaristic and repressive. Even if Trump does not share their goals, his standing alongside these two dictators at a military parade would be heavily exploited by Chinese and Russian media to depict an image of unity among the three powers. Such an image could damage global perceptions of the U.S. and undermine America's moral standing as the beacon of freedom. It risks shaking allies' trust in the values the U.S. represents. Trump is unquestionably one of the most influential American presidents and global leaders of our time. He has firmly defended American interests and values, taken strong action against the Iranian regime, and shown deep respect for America's military — earning widespread admiration at home and abroad. Yes, diplomacy involves difficult trade-offs. But China's invitation is not a normal diplomatic event. It is a stage crafted by an authoritarian regime to whitewash history and showcase military might — not in the pursuit of peace, but to control the global narrative. By declining to attend, President Trump would send a powerful signal: that America stands for historical truth, democratic values and the shared honor of defending freedom with its allies. Moreover, the Chinese Communist Party is currently under significant pressure from U.S. tariffs and technological sanctions. Its economy is more dependent on global markets than ever. This is not the time to offer Beijing symbolic concessions or legitimacy. 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