Artificial intelligence could deepen China’s persistent imbalance between strong industrial supply and weak domestic demand, Huang Yiping, a member of the People’s Bank of China’s monetary policy committee and dean of Peking University’s National School of Development, said at a Beijing economic forum on September 19. The warning comes as the PBOC’s August 2026 quarterly meeting identified “strong supply, weak demand” as a defining feature of the economy and pledged more accommodative monetary policy to support consumption and narrow structural divergences. Huang said easier money alone would have limited effect without measures to repair the balance sheets of local governments, companies and financial institutions. He called for increased central government borrowing, deeper overseas investment and market-oriented reforms to improve resource allocation. The debate is unfolding amid pressure from the United States and other major trading partners for China to reduce its reliance on exports and address excess industrial capacity that is sending goods into global markets.