JPMorgan Chief: AI Sector Bubbles Are Normal, China Holds Four Key Competitive Advantages

According to JPMorgan's chief economist for Greater China Zhu Feng, cyclical bubbles during AI development are normal as the sector advances. The analyst noted that stock price corrections are inevitable once investors question capital spending returns, fundamentals, or profit conversion timelines. Zhu emphasized that future AI competition hinges not on model size but on achieving higher-quality inference at lower costs embedded in real business processes.

China holds four main opportunities: expansive application scenarios across manufacturing, finance, healthcare, education, e-commerce, and logistics; strong engineering and cost control capabilities; rich data and supply chain scenarios in manufacturing; and enterprises' proficiency in rapid iteration and commercialization. While China may not lead all foundational models, it maintains clear competitive advantages in application, manufacturing, and commercialization.