China’s AI Bubble Bursts

China’s equity market has seen a rapid, AI‑heavy selloff that erased roughly $480 billion and knocked the STAR50 index down about 40% in months. The crash reflects valuation concentration in AI/chips, worries about foreign export bans and taxes, and risks to Beijing’s plan to channel household savings into a steady ‘slow bull’ market. — If China’s AI stock collapse persists it will alter global capital flows, slow China’s industrial upgrading strategy, and raise the stakes for export controls and financial regulation in AI supply chains.