Xi Jinping has set AI as a national priority. This means that lenders (Chinese party run banks) will "lend" money to AI orgs with no financial strings attached. No business evaluation needed. This is how China does growth, they just fund it in the direction they want without much attention to profitability or returns. It's how you get billion dollar high speed rail lines that transport 50 people a day along the route.
Despite the many capitalist facets of China, it's core operations are still planned communist economy.
That you do not follow is apparent from your comment. I don't think this will be a productive discussion - you're speaking in such broad generalities about provable facts about specific companies (Alibaba, Baidu, etc.) that it is difficult to respond. Take care.
Xi Jinping has set AI as a national priority. This means that lenders (Chinese party run banks) will "lend" money to AI orgs with no financial strings attached. No business evaluation needed. This is how China does growth, they just fund it in the direction they want without much attention to profitability or returns. It's how you get billion dollar high speed rail lines that transport 50 people a day along the route.
Despite the many capitalist facets of China, it's core operations are still planned communist economy.