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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20

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0
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MNCs capitalize on NE China investments

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

Huajin Aramco Petrochemical Co's fine chemicals and raw materials project in Panjin, Liaoning province, is progressing rapidly with an investment of 83.7 billion yuan ($11.9 billion). This project represents Saudi Arabia's largest investment in China and benefits from strong local government support since its start in March 2023. Northeast China, comprising Liaoning, Jilin, and Heilongjiang provinces, is leveraging its industrial base and supply chains to pursue high-quality development under China's revitalization strategy. The region is seeing improvements in industrial structure, infrastructure, and business environment, attracting multinational investments.

Liaoning authorities recently held a meeting focused on creating a market-oriented, law-based, and international business environment with comprehensive support systems for businesses. Dalian, the largest port city in Northeast China, introduced 15 measures to encourage foreign investors to establish R&D centers, including enhancing R&D convenience, attracting overseas talent, and protecting intellectual property. Prime Planet Energy Dalian, a Japanese-Chinese joint venture, has benefited from these measures, receiving over 8 million yuan in incentives for its 3.7 billion yuan electric vehicle battery project, which moved quickly from contract signing to construction.

Michelin in Shenyang exemplifies long-term multinational investment, having expanded its presence and invested over 12.5 billion yuan since 2010. Shenyang is noted for a growing consumer base, upgrading auto industry, and optimized industrial and business environments. The China-Germany Equipment Manufacturing Industrial Park in Shenyang supports BMW Brilliance's sustainability goals with clean energy heating and provides extensive services for foreign enterprises and employees, including visa, medical, and educational facilities.

These enhancements have helped Michelin establish its largest and most advanced global manufacturing base in Shenyang, a key part of its global supply chain. The region's focus on innovation-driven, sustainable growth offers extensive opportunities for multinational corporations seeking long-term development in China.

Kontainer Durian Beku Indonesia Tiba di Tiongkok, Perkuat Akses Pasar Buah ASEAN

Frozen Indonesian Durian Containers Arrive in China, Strengthening ASEAN Fruit Market Access

Media Indonesia | Local Language | News | Jan. 9, 2026 | UndeterminedBizdev-Partnering

A container of frozen durian from Indonesia, previously approved by the Indonesian Quarantine Agency, arrived in Qinzhou, Guangxi, China on January 5, 2026. This marks the beginning of direct distribution of Indonesian frozen durian to China via sea transport. The event highlights strengthened agricultural trade cooperation between Indonesia and China, supported by a bilateral quarantine protocol and technical consultations ensuring compliance with Chinese food safety and plant health standards.

The frozen durian’s arrival supports the development of the China–ASEAN Fruit Trade Center in Qinzhou, a key logistics hub with fast customs services and integrated inspection facilities, facilitating efficient inflow and distribution of Southeast Asian agricultural products. Enhanced port infrastructure, bonded zones, and multimodal logistics networks enable broad market access within China, bolstering Indonesia’s position as a leading supplier of value-added horticultural products.

Officials from the Indonesian Embassy in China emphasized readiness to promote more Indonesian products and invited Chinese businesses for cooperation. The successful export reflects effective government policies, international collaboration, and robust quarantine and logistics systems. Looking ahead, Qinzhou Port is expected to expand its shipping routes to ASEAN countries and become a strategic maritime access point with the 2026 opening of the Pinglu Canal, which could reduce logistics costs for Indonesian and regional agricultural exports by up to 30 percent.

This development signals a transition from potential to tangible market realization for Indonesian durian exports, positioning the country for broader agricultural export growth supported by government backing, international partnerships, and national companies’ active participation.

Shinsegae's Alibaba Deal Signals Boost for Korean Fashion, Beauty Brands in China

Yicai Global | English | News | Jan. 9, 2026 | UndeterminedBizdev-Partnering

South Korean conglomerate Shinsegae Group has partnered with Alibaba International to export Korean products to China via Alibaba’s platform, marking a significant step in the warming political and commercial relations between South Korea and China. The agreement, reached at a recent China–South Korea Business Forum, is expected to improve short-term sentiment for Korean consumer brands, especially in fashion and beauty sectors.

Since 2025, more than 10 Korean fashion brands, including Emis, Rest&Recreation, Ronron Archive, and Musinsa Standard, have entered the Chinese market, expanding both online and through physical retail stores. Notably, Rest&Recreation rapidly opened over 10 outlets across major Chinese cities in 2025, while Musinsa plans to open more than 100 stores in China by 2030, aiming for combined revenues exceeding USD 690 million.

Industry experts highlight that while Korean cultural influence and fast-evolving fashion trends attract Chinese consumers, the competitive landscape in China has shifted, with local brands growing fast and consumer preferences heavily influenced by social media. The future growth of Korean brands will depend on their ability to differentiate, develop efficient supply chains, and integrate localized e-commerce, social content, and offline retail experiences.

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