Huang Yiping: AI Could Worsen China's Supply-Demand Imbalance

Yuxuan JIA and Yiyang Xu Oct 20, 2026 9 4 Share Huang Yiping , Boya Distinguished Professor, Dean of the National School of Development (NSD), Dean of the Institute of South-South Cooperation and Development (ISSCAD) at Peking University recently raised concerns that artificial intelligence could exacerbate the imbalance between strong supply and weak demand in China’s economy, even as it boosts productivity.

Drawing on the “Solow paradox” and “Engels’ pause,” Huang cautioned that technological advances do not necessarily translate into immediate productivity gains or higher wages for workers. He called for “employment-first AI innovation” and suggested that persistently weak demand could require public policies beyond conventional macroeconomic frameworks.

The remarks were delivered at the Inclusion Conference on the Bund in Shanghai on 9 September 2026. A transcript was published on the NSD’s official WeChat account on 16 September.

We are publishing a translation of Huang’s remarks under the NSD’s authorisation.