Even if the ethics of AI get to a point where people can trust it and use it, that still only applies to us not them. Us being the citizens and peons in their eyes and them being the government and ruling elite. They will break the ethics "rules" quicker than anyone could imagine. They break the current ethics rules now!
It's amusing though that they are trying to say that China investing heavily into AI doesn't affect their decision to. What a load of crap.
I do agree with you though; they need to advance the AI comprehension of situations rather than just analytics. There are millions of possibilities that can happen but there are also other factors that these AI programs cannot take into consideration such as morals and what is morally correct.
The values and moral code of a machine are only as good as the programmers programming ;) Either moral code is applied voluntarily by conscious being, like animals can so varying degrees with humans having the most potential to do so, or it's applied/imposed by others, like a society, authority or programmer. Rulers certainly are a bad authority to set the rules for AI and AI governance they want to set up lol.