Chinese AI

The stock market in the United States marked a colossal drop on Thursday, seen as one of the worst performances in a while. The downturn was primarily due to rising investor concerns regarding China's swift rise in AI. According to experts, breakthroughs in AI from China pose a grave threat to the global economy, specifically to the US economy, and could lead to serious disruption in the labor market. According to reports, the Chinese AI industry is expected to be worth more than 300 billion dollars by 2025, higher than the combined spending of both the US and Europe. This fast acceleration raises concerns that the AI dominance on the part of China may fundamentally alter the ground for economic competition, which could make the US economy susceptible. On Thursday morning, major US stocks opened sharply lower, with the Dow Jones Industrial Average (DJIA) diving by more than 1,000 points in early trades. The S&P 500 and Nasdaq also plunged heavily, dropping 3.3% and 4.2%, respectively: The S&P 500's biggest single-day drop since May 2020. Investors were particularly troubled by AI advances in China with regards to robotics, computer vision, and natural language processing. Some of these technologies could end up automating sectors like manufacturing, finance, and healthcare, possibly replacing millions of US workers. Fears of mass job losses prompted investors to worry about the race for wealth between the healthy and sick economies in China's AI strike. "We are looking toward a perfect storm of technological disruption and global economic transitions," said one of the economists. "China's AI breakthroughs can potentially uproot the global economic order while putting millions of US workers at risk. No wonder there's panic in the market." The fall in US stocks was also sparking concerns about possible US economic growth. As the AI industry continues to grow in China, there'd be an increasing risk of the US being left behind in economic terms. Economic production drop could snowball into recessionary times. Aiming to overcome the various dangers, the policymakers have risen in calls for wider investment in AI research and development. The US Government has disbursed a reasonable sum toward AI-related programs, yet many claims that much more needs to be done to match the speed with which China is advancing. "We should think creatively and invest in the future," said a senior government official. "We can't let China take on an advantage in AI. The well-being of our economy relies upon it." As the US stock market spins out of control, closely watching China's journey into AI would keep it on toes among the next generation. The further it continues to play games of chance, the more critical these months may turn out to be for the future of US economic history. Key Statistics: 1. Dow Jones Industrial Average (DJIA) dropped by 1,040 points (-4.2%). 2. S&P 500 discounted by 3.3%. 3. Nasdaq shrank by 4.2%. 4. China's AI industry is expected to surpass 300 billion US dollars by 2025. 5. U.S. Administration has committed a significant budget to AI-related initiatives.