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In addition, China’s conflicting goals may be holding back how much companies spend. Policymakers want to achieve technological self-sufficiency and be an AI leader. But they are also warning against “disorderly competition” and a “follow-the-crowd” approach in the sector.

To avoid the overcapacity prevalent in industries from solar panels to electric vehicles, Beijing wants to develop AI in a coordinated way.

Alibaba, Tencent and others bruised by a years-long regulatory crackdown are likely to toe the line - a sharp contrast to, say, Sam Altman’s OpenAI’s inking a web of deals and tie-ups worth $1 trillion to realise his ambitions.

These pressures explain why most Chinese tech firms are opting to quickly commercialise pragmatic applications across factories, schools, hospitals, cities and more, rather than spending larger sums to achieve higher AI capabilities.

China’s measured approach to spending means it is less likely than the United States to face an AI bubble-induced economic crash. But the Asian behemoth risks falling behind in shaping this generation’s most important technology.