The AI future is now, and markets are reacting differently in the US and China
South China Morning Post
by Ben Jiang,Vincent ChowFebruary 14, 2026
AI-Generated Deep Dive Summary
The rise of artificial intelligence (AI) is reshaping industries worldwide, with markets responding differently in the US and China. In the US, investor sentiment has grown increasingly nervous as AI disrupts traditional business models, particularly in software-as-a-service (SaaS) sectors. This unease stems from concerns that AI could render current technologies obsolete, leading to significant market shifts. Start-up founder Matt Shumer recently highlighted this potential upheaval, comparing the current moment to the pre-COVID-19 era and suggesting that AI’s impact could be even more profound.
In contrast, China’s markets have so far remained relatively stable despite advancements in its own AI capabilities. Chinese legacy software stocks have not experienced the same level of pressure as their US counterparts. Instead, some AI-related firms in China have seen increased investor interest, particularly in sectors like cultural and content creation. For instance, the release of ByteDance’s powerful Seedance 2.0 video-generation model has sparked optimism about improved productivity and streamlined workflows, leading to rising share prices in related industries.
The divergence in market reactions reflects broader economic and regulatory contexts. While US investors grapple with uncertainty about AI’s long-term effects on their portfolios, China appears more insulated from immediate disruptions. This cautious approach may stem from China’s controlled pace of technological adoption and its focus on incremental advancements rather than radical overhauls. However, the potential for AI to transform global markets remains significant, and both countries are likely to continue navigating this evolving landscape with differing strategies.
For readers interested in global business trends, understanding these dynamics is crucial. The US market’s anxiety reflects a broader reevaluation of traditional industries in the face of technological change, while China’s measured response highlights the country’s strategic approach to integrating AI without triggering widespread panic. As AI continues to advance, the interplay between innovation and market stability will remain a key focus for investors worldwide.
In summary, the AI revolution is underway, with US markets feeling the pressure of transformative change and China adopting a more cautious yet proactive stance. The outcomes of these differing approaches could shape global economic trends and investor sentiment in the years to come.
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Originally published on South China Morning Post on 2/14/2026