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


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REITs signal faster shift in realty biz

China Daily | English | News | Jan. 9, 2026 | UndeterminedReal Estate

China launched a pilot program for commercial property real estate investment trusts (REITs) on December 31, 2025, marking a significant shift in the real estate sector’s development model. The program, approved by the China Securities Regulatory Commission (CSRC) and supported by the Shanghai and Shenzhen stock exchanges, allows market participants to apply for issuing commercial property REITs, focusing initially on commercial complexes, retail properties, office buildings, and hotels. The pilot will proceed cautiously, emphasizing quality, compliance, and risk management.

Commercial property REITs are designed to provide stable cash flows through public investment in income-generating commercial real estate, encouraging property companies to move away from a debt-heavy, rapid turnover business model toward asset-light, operations-focused growth. As equity-based instruments, REITs offer developers an alternative funding source that reduces balance-sheet leverage, improves liquidity, and enhances cash-flow stability by converting illiquid assets into tradable securities.

The initiative aligns with broader structural reforms in China’s real estate market, responding to calls for a model shift from new home sales to holding income-producing properties and providing diversified services. Analysts emphasize that REITs are crucial financial tools facilitating this transition, contributing to a more sustainable and resilient sector. The pilot launch accompanies the continued growth of China’s REIT market, which already includes 78 infrastructure REITs with a market capitalization of 219.9 billion yuan ($31.5 billion).

The CSRC plans to further develop the REIT market by expanding REIT-related indices, supporting index-linked fund products, attracting long-term institutional capital, and promoting REIT inclusion in stock connect programs. Guidelines restrict the use of funds raised through commercial property REITs from purchasing land for commercial residential housing and introduce market-oriented return requirements tied to the yield on 10-year government bonds.

Venezuela Points to Corruption of Global Order

China-US Focus | English | AcademicThink | Jan. 9, 2026 | Political Scandal or Corruption

In early January 2026, Venezuelan President Nicolas Maduro was kidnapped and taken by U.S. military forces following strikes on Venezuelan territory, sparking global controversy. China condemned the U.S. actions as a severe violation of international law and state sovereignty, calling for Maduro’s immediate release and urging respect for Venezuela’s government. Beijing emphasized that leadership changes should occur internally, not through external military intervention, reflecting its broader stance against unilateral interference and its role as a permanent UN Security Council member representing the Global South.

The U.S. justified the operation by alleging drug trafficking and security threats originating from Venezuela, presenting the intervention as necessary for regional stability and the integrity of the oil sector. Critics argue that these claims are exaggerated and politically motivated, pointing out inconsistent U.S. actions toward other states involved in transnational crime. Venezuela's vast oil reserves are seen as a central factor in the U.S. motivation, highlighting a recurring pattern where resource control and geopolitical interests drive military interventions under the guise of security or humanitarian concerns.

The event reveals deep fractures in the post-World War II international system, undermining principles of sovereign equality and non-intervention. The UN Security Council’s paralysis due to veto power and geopolitical alliances has prevented decisive action against the U.S., signaling to smaller states that international law might be selectively enforced. The use of military force to override sovereignty threatens to replace a rules-based global order with one controlled by power politics, putting developing nations at risk of losing political autonomy and becoming subject to the interests of more powerful states.

The crisis in Venezuela exemplifies a broader shift towards a hierarchical international system where law serves the interests of the strong rather than justice. The article stresses that the core issue is not Maduro's legitimacy but whether the global community will allow sovereignty to be compromised by might and strategic convenience. Without substantial international response, this incident risks setting a precedent that could jeopardize the rule of law and global stability worldwide.

China reviews Meta's purchase of AI startup Manus, FT reports

CNBC | English | News | Jan. 9, 2026 | Regulation

Chinese officials are reviewing Meta's $2 billion acquisition of the AI startup Manus for potential technology control violations. The review focuses on whether the relocation of Manus' staff and technology to Singapore and the subsequent sale to Meta require an export license under Chinese law.

The assessment by China's commerce ministry is at a preliminary stage and may not result in a formal investigation. However, the requirement for an export license could provide Beijing with leverage to influence or potentially block the transaction.

Meta completed the acquisition of Manus last month. Manus, a Singapore-based firm valued between $2 billion and $3 billion, gained attention earlier this year for releasing what it claimed to be the world's first general AI agent, which autonomously makes decisions and executes tasks with less prompting than AI chatbots like ChatGPT and DeepSeek.

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