China

Intelligence for Better Decision Making

Surge in Chinese AI Industry Driven by Government Action and Market Demand
Jan. 8, 2026 | Technology & Innovation

China is accelerating its artificial intelligence industry through a series of strategic measures at both national and local levels.

**Beijing’s municipal government released on January 6, 2026 an action plan to grow the city’s core AI industry to over 1 trillion yuan (about $142.5 billion) within two years.**
The plan sets out nine initiatives that emphasize technological innovation, joint research projects, expanded data access and broader applications of AI across multiple sectors. It includes talent attraction schemes, mobilization of long-term capital and support for open-source AI ecosystems.

**The plan sets specific targets such as developing a domestically produced AI computing cluster with capacity exceeding 100,000 chips, listing more than 10 AI-related companies on public markets and cultivating over 20 AI unicorns.**
Building on China’s 14th Five-Year Plan (2021–2025), which positioned the country as a global AI leader with more than 5,300 AI enterprises (roughly 15 percent of the worldwide total), Beijing aims to accelerate its transformation into a world-class innovation hub.

**Beyond Beijing, local governments have launched “Artificial Intelligence+” campaigns to integrate AI into forestry management, public safety, agriculture, healthcare, environmental remediation, manufacturing, cultural heritage promotion, dispute arbitration and rural revitalization.**
In Hunan Province, officials use carbon credits to fund forest firefighting road upgrades; Shanghai deploys “Mo Xiaosu” service robots; Henan’s grain producers benefit from smart farming data systems; Yunyang County operates a unified village clinic management system; Shanghai’s Jiading District runs highly automated robot production facilities; and Anhui’s Fuyang advances so-called “black technology” innovations.

**Zhuhai in Guangdong Province established China’s first local government bureau exclusively for AI development at the end of 2025, following Haizhu District in Guangzhou—the first district-level AI bureau—and Wenzhou in Zhejiang, where the bureau integrates AI and data management.**
These specialized bureaus coordinate critical resources—energy, computing power, data, policy support and talent—to address challenges such as high energy consumption and data center quota restrictions. They implement industrial policies and allocate resources to enable breakthroughs in core AI technologies, while regulatory oversight and cross-industry application promotion remain with other agencies.

**As of early 2026, Zhuhai has achieved an intelligent computing power scale of 2,100 petaflops and launched China’s first brain-like computing power open platform, hosting 50 large language model developers.**
In Guangzhou’s Haizhu District, more than 7,000 AI companies operate alongside 32 large language model projects, backed by a planned annual allocation of 310 million yuan to nurture AI unicorns.

**At the CES trade show in Las Vegas on January 6, 2026, Nvidia CEO Jensen Huang reported “very high” customer demand in China for the company’s H200 AI chips.**
The US government has agreed to approve exports of these chips under a licensing process and a 25 percent sales fee to the US government, as announced by President Trump. Huang projected that the Chinese market opportunity could reach $50 billion annually—an estimate not yet reflected in Nvidia’s forecasts—and said final regulatory clarity would emerge as purchase orders arrive. These potential sales could add to Nvidia’s projected $500 billion in revenue over the next two years.
Harbin Showcases Global Innovations and Partnerships at Ice and Snow Expo and Mayors Dialogue
Jan. 8, 2026 | Technology & Innovation

Harbin’s recent Ice and Snow Expo and Global Mayors Dialogue united international participants to showcase cutting-edge cold-region technologies and craft policies for developing winter economies.

**Harbin hosted the inaugural International Ice and Snow Expo across 20,000 square meters, featuring a central exhibition area flanked by six themed zones on sports, culture, equipment manufacturing, tourism, green technology and international cooperation.**
The event brought together diplomats, city representatives, business leaders and experts from more than 20 countries to mark the 20th anniversary of the Harbin–Rovaniemi sister-city partnership and advance collaborative efforts in cold-region infrastructure and technology.

**Major industry players took the stage.**
Zhejiang Geely Holding Group introduced methanol-hydrogen vehicles engineered for extreme cold, while Harbin Engineering University unveiled unmanned aerial vehicles and vessels designed for polar operations, complete with specialized fuel systems. Exhibitors showcased industrial-grade snow-removal robots, snowmobiles, carbon-fiber skis and integrated technology platforms that promote green development. The expo also launched eight new institutions dedicated to ice and snow research, education, industry-education collaboration and international academic exchange, strengthening the sector’s innovation and talent pipeline.

**In 2024 Harbin’s ice and snow economy generated more than 160 billion yuan (about 22.8 billion US dollars), roughly one-sixth of China’s national total.**
Across the country, the sector now includes over 14,000 tourism-related enterprises. Analysts expect the national ice and snow economy to grow from just over one trillion yuan in 2025 to 1.2 trillion yuan by 2027 and 1.5 trillion yuan by 2030, fueled by China’s dual carbon goals, rising consumer demand and expanding international markets.

**Concurrently, the Global Mayors Dialogue convened on January 6, 2026, at Harbin Ice-Snow World under the oversight of the State Council Information Office and the Heilongjiang and Harbin municipal governments.**
Mayors and senior city officials from Canada, Finland, Germany, Greece, the Republic of Korea, Thailand, Turkiye and China participated. The opening ceremony featured cultural performances, interactive ice sculpture trimming sessions and visits to local ice and snow attractions, fostering exchanges on policy experiences and urban strategies for developing ice and snow economies in cold-region cities around the world.

Monitored Intelligence for China - Jan. 8, 2026


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打开长江经济带高质量可持续发展之窗

Opening a Window to the High-Quality and Sustainable Development of the Yangtze River Economic Belt

Guangming Daily | Local Language | News | Jan. 8, 2026 | UndeterminedEconomic Growth

Since 2016, China has prioritized the development of the Yangtze River Economic Belt as a key strategy for achieving high-quality, sustainable development. Guided by General Secretary Xi Jinping’s vision, the initiative emphasizes ecological protection alongside economic growth, focusing on long-term benefits for the nation. Efforts have led to significant environmental improvement, with the proportion of good-quality water rising from 67% to 96.5%, an increase in the region’s GDP share from 42.2% to 47.3%, and residents' per capita income nearly doubling over the past decade.

The approach balances ecological preservation with economic advancement by addressing challenges such as industrial pollution and transforming traditional industries through green technologies and innovation. Notable examples include the environmental cleanup and modernization of polluting enterprises like Chuyuan Group and the emergence of resource-based cities like Yibin and Changzhou as leaders in green industrial development. The region is now advancing policies that promote carbon reduction, pollution control, and green space expansion, supported by a growing green electricity share and leading green factories.

China also focuses on shifting from old economic drivers to new ones by fostering scientific and technological innovation tailored to local conditions. Investments in research, exemplified by Hefei’s Science Island, and upgrading traditional industries with new technologies are key elements. Provinces like Anhui have achieved significant economic milestones by cultivating new industrial clusters and aligning innovation with industrial development, contributing to China’s rising global innovation ranking during the 14th Five-Year Plan period.

Coordinated regional development is pursued through integrated governance frameworks that transcend administrative boundaries, promoting unified planning, market operations, regulations, and public services. Successful models such as the Yangtze River Delta Ecological Green Integrated Development Demonstration Zone illustrate this “six ones” approach, fostering ecological and economic symbiosis. Interprovincial cooperation, for example between Sichuan and Chongqing or eastern provinces aiding western regions like Qinghai, exemplifies collaborative strategies to enhance ecological protection and shared prosperity. These efforts align with broader national development plans aiming to create complementary, stable, and high-quality economic growth across the Yangtze River Economic Belt.

Column: China's cooperation-based security approach holds practical significance amid global instability

Xinhua | English | News | Jan. 8, 2026 | Shifting Geopolitical Alliances

China advocates a cooperation-based security approach focused on mutual respect and shared security, contrasting with traditional military alliances and confrontational strategies. This vision, encapsulated in Xi Jinping’s Global Security Initiative (GSI), promotes common, comprehensive, cooperative, and sustainable security, emphasizing that national security is interconnected and best ensured through diplomatic consultation and inclusive multilateralism.

Since unveiling the GSI in 2022, China has gained support from over 120 countries and organizations and has played active roles in mediating conflicts. Notable examples include facilitating the 2023 Saudi-Iran reconciliation, advocating political resolutions in Ukraine, and hosting talks to encourage Israeli-Palestinian dialogue. Complementing these efforts, China’s economic initiatives like the Global Development Initiative and Belt and Road Initiative (BRI) address root causes of instability by promoting development and connectivity, especially in vulnerable regions.

Regional partnerships further anchor this cooperative security model, as seen at the 2024 Shanghai Cooperation Organization summit in Astana, where Eurasian leaders endorsed unity and rejected zero-sum geopolitics. Kazakhstan, notably, has leveraged the BRI to enhance regional infrastructure and trade, with bilateral trade between China and Central Asian countries nearing $95 billion in 2024, fostering economic stability and reducing extremism.

China’s approach treats security as a collective endeavor necessary for tackling transnational challenges such as nuclear risks, pandemics, and climate threats. Despite challenges from geopolitical rivalries and mistrust, ongoing dialogue and partnership efforts demonstrate that cooperation-based security is moving beyond theory into practical application. For countries large and small, including Kazakhstan, this model offers a pragmatic path toward reducing conflict, promoting development, and building a stable and equitable international order amid global uncertainties.

East China trade hub transitions from local market to global stage

Peoples Daily | English | News | Jan. 8, 2026 | UndeterminedTrade Issues and Numbers

Linyi Trade City in Shandong Province has transformed from a domestic wholesale market into a significant international trade hub, connecting Chinese manufacturers with global buyers. From January to November 2025, the market hosted 90 events for international buyers, attracting 44,500 foreign purchasing trips—a 47.85% year-over-year increase—with intended transactions totaling approximately 23.67 billion yuan (3.39 billion U.S. dollars).

Local entrepreneurs, like Geng Yanzhou of Shandong Haoduobao Supply Chain Co., Ltd., have leveraged Linyi’s efficient sourcing and logistics to expand their business models internationally, opening "variety stores" in regions such as Southeast Asia, Africa, and Latin America. These stores, selling affordable goods, have quickly turned profitable and serve as demonstrations of Linyi’s trade potential.

Linyi’s modern logistics city hosts over 1,700 freight companies and functions as a crucial Eurasian trade node. Shandong Linmanou International Logistics Co., Ltd. has expanded its fleet operating under the TIR system, enabling faster road transport—cutting delivery time to Moscow to under 10 days, compared to over 20 days by rail. Additionally, the new Lantian North International Automobile City, repurposed from the former Jinlan logistics base, exports around 900 refurbished used vehicles monthly to over 20 countries across several continents.

Supporting these developments, the Shandong Provincial Government introduced guidelines in late 2025 to elevate Linyi Trade City as a key strategic hub aligned with China’s 15th Five-Year Plan for 2026-2030. The plan prioritizes internationalization and digitalization to enhance global market access, digital infrastructure, and modern logistics, aiming for sustained, high-quality growth.

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