AI is reviving Chinese Marxist economics
China's Marxist economists argue that AI-driven automation could eliminate the rent trap and undermine capitalism's foundations.
Athens – Once China embraced capitalism, its elite universities largely adopted Western economic teachings. A professor in a top Chinese economics department confessed that most colleagues merely pay lip service to Marxism, with only a small minority taking it seriously. That assessment was made two years ago. Now, the rapid advancements in artificial intelligence are reviving Chinese Marxist economic theories.
Chinese Marxists have long been apprehensive that the country's shift towards capitalism might propel it into a "rent trap," a situation reminiscent of what has occurred in North Atlantic economies. This trap typically involves asset-price inflation, a sharp economic slowdown, stagnation, deindustrialization, and social unrest. When competition in productive sectors causes profit rates to decline, investors are increasingly drawn to property yielding high rents, as it offers the greatest risk-adjusted returns.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
