Economist Liu Yuhui Warns of AI Industry Cost Crisis, Safety Assets Most Valuable

According to Guru Club, economist Liu Yuhui warned on July 23 that the AI industry faces a structural imbalance: semiconductor producers enjoy soaring margins while downstream cloud giants are burning through cash. China's competitive advantage lies in superior industrial capacity and engineering optimization, positioning it to dominate AI competition by reducing token costs and democratizing technology access. Liu emphasized two core principles for navigating market volatility: China's policy priority hierarchy (great power competition > technology > industrial systems > domestic demand) must guide investment decisions to capture excess returns; and in an era where global economies have become highly fortified, safety now takes precedence over efficiency, making safety-backed assets the richest future premium.
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