Chinese investors shrug off AI fears after Citrini report sparks US sell-off

Chinese analysts and investors have expressed scepticism about a viral report by a small US research outfit that triggered a major sell-off on Wall Street, saying China could be largely immune to major artificial intelligence disruption, given the low level of digital penetration in the country’s traditional institutions.

Citrini Research’s report, published on Sunday, included references to the impact of China’s AI advances. The translated version of the report was widely circulated in Chinese investor communities.

Titled “The 2028 Global Intelligence Crisis”, the report forecasts a world in June 2028 reeling from mass unemployment and economic recession due to AI, though the firm noted that this was not a “prediction” but rather a “scenario”.

“Hopefully, reading this leaves you more prepared for potential left tail risks as AI makes the economy increasingly weird,” it said.

Xiao Lei, Hong Kong-based head of research and chief economist at Kasikornbank, said the US sell-off reflected the “extreme fragility” of US investor sentiment that was looking for any reason to sell in the face of AI disruption.

“If you see a strong man suddenly break down in tears in a restaurant because there’s no chilli sauce on the table, you immediately understand that he must have been holding back those tears for a long time,” Xiao said in a blog post published on Tuesday.