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. 9, 2026


News
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324

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9

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20

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0
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China-S.Korea business complementarity far outweighs competitiveness, business leader tells GT

Peoples Daily | English | News | Jan. 9, 2026 | UndeterminedBizdev-Partnering

China is enhancing its investment and business environment by improving infrastructure, fostering innovation enterprises, and attracting high-end talent, creating significant opportunities for deeper cooperation with South Korea, according to Kim Jong-moon, chief representative of the Korea Innovation Center (KIC China). A recent South Korean delegation, led by Deputy Prime Minister Bae Kyung-hoon, visited major tech centers and companies in Shanghai, gaining insight into China’s rapid technological development and robust infrastructure.

Kim highlighted China's advanced infrastructure, from highway networks to intelligent traffic management and power engineering, as critical to sustainable technological progress and industrial upgrading. He also emphasized China’s thriving high-tech ecosystem, driven by leading domestic enterprises and a strong talent pool that supports ongoing innovation and long-term industry growth.

The longstanding diplomatic and economic relationship between China and South Korea has fostered a collaborative high-tech sector where complementarity surpasses competition. The two countries have developed specialized and efficient industrial chains in areas such as semiconductors, new-energy vehicles, and display panels. Kim suggested that further cooperation through joint R&D, shared laboratories, and technological exchanges could help mitigate risks like technological blockades and supply chain disruptions, while accelerating innovation commercialization.

China and South Korea also offer strategic advantages for each other’s global expansion. South Korea can act as a gateway for Chinese technologies into developed markets, while China provides a large market and strong manufacturing base for South Korean companies, especially in Asia. The Korea Innovation Center in China plays a key role in facilitating cooperation among innovation enterprises, research institutions, and investors, aiming to build a sustainable and future-oriented innovation landscape between the two nations.

Judicial guideline streamlines maritime dispute resolution nationwide

China Daily | English | News | Jan. 9, 2026 | Geopolitical Conflict and Disputes

A new judicial guideline was introduced to enhance collaboration between courts and maritime authorities nationwide, aiming to improve the resolution of maritime disputes through multiple approaches. Issued jointly by the Supreme People's Court and the Ministry of Transport, the guideline targets key dispute areas including maritime traffic, seafarer employment, personal injury compensation, vessel pollution, and administrative disagreements.

The guideline emphasizes mediation as the primary method for dispute resolution, due to the necessity of timely decisions, the complexity of determining accident liability, and the frequent cross-border nature of maritime cases. To boost professionalism and efficiency, it calls for regular training of mediators and increased information sharing between judicial and maritime bodies.

The development of maritime one-stop dispute resolution centers is a central element of the guideline, with a focus on accessibility and convenience for the public. By December, more than 60 such centers had been established across coastal regions, the Yangtze River basin, and major inland waterways, operating under joint leadership of maritime courts and authorities and strategically located at ports and maritime bureaus.

Does Venezuela Herald a No-Rules International Order?

China-US Focus | English | AcademicThink | Jan. 9, 2026 | Geopolitical Conflict and Disputes

The United States’ intervention in Venezuela highlights evolving dynamics in the liberal international order rather than signaling its collapse. While the core pillars of this order remain intact and alternatives are weak, the intervention exemplifies a shift toward more frequent discretionary US actions without clear thresholds for when coercion supersedes restraint. This ambiguity challenges established norms about state behavior and the interpretation of power within the international system.

Historically, US global leadership relied on military and economic dominance, buttressed by alliances and institutional structures that created interdependencies. However, recent moves under the Trump administration, such as the intervention in Venezuela based on broad concerns like migration and Chinese influence rather than a clear “red line,” have blurred traditional boundaries. The administration’s actions—from prosecuting a sitting foreign leader to sidelining Congress and opposition groups—have replaced visible thresholds with discretionary judgments, creating uncertainty for other states.

This new approach undermines expectations of US prudence and restraint, potentially prompting other nations to hedge, seek legal protections, diversify institutions, and reduce exposure to US influence without necessarily defecting outright. Although the existing international order is not on the verge of collapse due to the lack of credible alternatives, maintaining US leadership is becoming more costly and transactional. The intervention in Venezuela thus intensifies a longstanding tension between unilateral enforcement and cooperative leadership, risking a future where the US is perceived more as a rogue power, thereby raising the costs and diminishing the returns of its global authority.

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