As economic ties continue to deepen, Chinese companies are expanding their presence in ASEAN countries beyond exports, moving into investment, local production, technological cooperation and regional operations.

China and ASEAN have been each other's largest trading partners for several consecutive years. In the first half of 2026, bilateral trade reached 4.34 trillion yuan (about $643.44 billion), an increase of 18.2% year on year.

However, ASEAN is far from a homogeneous market, with member states differing in development priorities, industrial strengths and policy approaches. For Chinese companies expanding across the region, the key question is how to navigate these differences and turn them into opportunities for more effective regional cooperation.

In a recent interview with Bridging News, Kat W. Wong, executive director at the Center for Advanced Studies and Research Malaysia, proposed the concept of "ASEAN Synergy." She said ASEAN countries share many similarities, but each has its own priorities. If they compete for the same industries, investments and projects, competition within the region is inevitable.

A more effective approach, she said, is to identify complementary roles across countries. Two or three countries, for example, could collaborate in the same industry, each contributing to different parts of the value chain and sharing resources and processes.

Cross-border energy cooperation offers one example. Laos provides electricity, Thailand and Malaysia connect regional power grids, and Singapore provides market demand. Each country plays a different role based on its own strengths. In January 2026, power authorities from Laos, Thailand and Malaysia signed a second-phase transmission agreement to further advance the four-country power trading arrangement.

For Chinese companies, investing in one ASEAN country does not have to mean operating in a single market. It can also provide access to resources, production and markets across the region, allowing companies to participate more deeply in ASEAN value chains.

Malaysia offers a case in point. Huang said the country's multilingual, multiethnic society and open market are among its key attractions for international investors. But Malaysia is looking for more than capital and projects. Foreign investment, she said, should also bring technology, expertise and spillover benefits to local industries.

The numbers underline the importance of foreign investment. In 2025, Malaysia approved 207.1 billion Malaysian ringgits ($50.65 billion) in foreign investment, accounting for 48.5% of total investment. China was the country's second-largest source of foreign investment.

The partnership between China's Geely and Malaysian automaker Proton shows how foreign investment can support the local economy. Since Geely acquired a stake in Proton, the companies have cooperated on vehicle and technology development, intellectual property, local parts production and supplier participation. The partnership raised local content in some Proton models to 82%, Malaysian Minister Datuk Seri Johari Abdul Ghani told local media outlet The Star.

Huang said China's advances in areas such as artificial intelligence could also benefit Malaysia. AI is already being used in demand forecasting, production planning, order management and logistics, helping businesses improve efficiency. But she stressed that cooperation should go beyond technology transfer. Malaysia ultimately needs to build its own technological and innovation capabilities.

She sees further opportunities for China and Malaysia to cooperate in AI, local innovation and talent development. Technical and vocational education and training, or TVET, could play an important role by promoting knowledge exchange, skills training and greater participation of local talent in industrial development.

This shift from market entry to joint technology and capacity building is gaining momentum in China-Malaysia cooperation, and China's southwestern Chongqing Municipality can offer a vivid example.

Chongqing-based Zonsen, a major Chinese industrial manufacturing company, has strengthened market and industrial cooperation with Malaysian partners, while the Harbin Institute of Technology's Chongqing Research Institute has worked with Malaysian universities in areas including AI and intelligent manufacturing.

Huang said Chongqing has strong capabilities in efficient, large-scale manufacturing, while Malaysia seeks to add more value to products and services and is well positioned to connect with markets across Southeast Asia. Their complementarity therefore goes beyond a simple model of "made in Chongqing, sold in Malaysia." It could extend across manufacturing, technology, talent, services and regional markets.

(Report by Huxin Luo, Junxiang Zeng, Yuan Dai, Sang Jian)

Traveling in China is gaining traction, with Elon Musk recently encouraging people to visit. With visa-free access available to travelers from 50 countries and regions and mutual visa-exemption agreements covering 29 more, experiencing China has never been easier.

China's car exports topped 1 million units in July for the second month running, and new energy vehicles (NEVs) are driving the boom.

NEVs made up more than half of exports for two months in a row, with 553,000 cars shipped overseas, up 145.5% on last year.

Total exports hit 1.043 million, up 81.3% year on year, according to the China Association of Automobile Manufacturers (CAAM).

China's auto industry broke the 1 million-unit barrier in June, and held it in July, after shipping over 900,000 in April and May.

That is no accident. China's full industrial chain, from lithium processing and battery manufacturing to electric motor controls and final assembly, gives the country a cost and capacity edge few can match, a CAAM official said.

Smart features like driver-assistance systems and AI-powered cockpits are helping win overseas buyers, the official added.

"Exports are becoming a key stabilizer and core growth engine," said Chen Shihua, deputy secretary-general of CAAM.

China's homegrown C919 large passenger aircraft landed safely at the new Ulaanbaatar airport in Mongolia on Wednesday afternoon after departing from Beijing Capital International Airport, marking the completion of the aircraft's first scheduled international commercial passenger flight.

A grand water salute ceremony was held at the airport. Passengers gradually disembarked from the aircraft, watched a unique ethnic dance performance, and were greeted by a procession of attendants dressed in traditional Mongolian attire.

This is the first international route opened for the C919 since the aircraft entered commercial operation, marking the official transition of China's domestically developed mainline passenger jet into a new era of regular international operations.

According to available information, the international route is operated under flight numbers CA723/CA724, with daily scheduled flights connecting Beijing and Ulaanbaatar.

As China's first domestically developed large passenger jet for civilian use, the C919 has been successfully operated on multiple domestic routes since entering commercial service. It has gained widespread market recognition due to its reliable flight performance, comfortable cabin experience and high safety standards.

The operation of this flight on the China-Mongolia international route demonstrates that the C919 has successfully passed the verification of bilateral international civil aviation operating standards, thereby officially acquiring the qualification for regular international commercial passenger operations.

Tech leaders from top AI companies, including OpenAI, Anthropic, Google and Meta, met with White House officials in discussions about potential review procedures on closed AI models.

The meeting comes on the heels of revelations that some of the world's most popular AI models have been navigating around safeguards and breaking into other companies without permission.

CGTN's Mark Niu reports.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

Editor's note: Warwick Powell is an adjunct professor at Queensland University of Technology. The article reflects the author's opinions and not necessarily the views of CGTN.

Artificial intelligence (AI) can become an international public good that benefits all of humanity. This proposition, advanced at the 2026 World Artificial Intelligence Conference, crystallizes a fundamental choice now confronting the world. 

We face a crossroads. One path seeks to enclose capability behind regulatory barriers, export controls and proprietary moats. The other prioritizes open cooperation, low-cost deployment and the deliberate diffusion of opportunity. 

The United States is building walls. China is paving roads. The consequences will shape not only technological trajectories but the structure of global order itself.

The American approach has hardened into a strategy of technological containment dressed in the language of open innovation. Successive administrations have layered export restrictions on advanced semiconductors, tightened controls on model weights and training data, and promoted frameworks such as the US AI action plan. Concepts like "adversarial distillation" have been invoked to police knowledge flows, while initiatives such as the Silicon Peace Declaration attempt to rally allies around exclusionary standards. 

The rhetoric celebrates openness and democratic values. The practice constructs digital fortresses. Hypocrisy defines the modus operandi.

These measures rest on a proprietary business model that treats frontier capability as a scarce rent-generating asset. Massive capital is poured into closed systems whose economic rationale depends on maintaining technological distance from competitors. Yet the model is already confronting insurmountable contradictions. Training and inference at scale demand enormous energy and capital intensity. Returns remain elusive for many commercial applications. 

Meanwhile, open-source alternatives of rapidly improving quality erode the scarcity premium that underwrites the entire edifice. When capable models can be obtained, adapted, and deployed at a fraction of the cost, the logic of closed proprietary systems begins to unravel.

The root problem, in fact, is thermodynamic and systemic. American AI development has become entangled with an energy system under strain, aging grid infrastructure and a financial architecture oriented toward speculative valuation rather than durable material productivity. The result is a paradox: a technology celebrated as a generator of informational order that, in practice, accelerates energetic and systemic entropy. High energy return on energy invested (EROEI) is the foundation of any sustained expansion of computational capacity. Where that foundation weakens, claims of inevitable dominance rest on fragile ground.

China's path is different in both design and effect. It treats AI not primarily as a vehicle for rent extraction or geopolitical leverage but as infrastructure for enabling capability across societies. 

Open-source models released by Chinese developers have already demonstrated that frontier performance need not be locked behind paywalls or geopolitical filters. These releases accelerate global learning cycles, compress development costs and allow nations and enterprises outside the traditional centers of power to build on shared foundations rather than remaining perpetual licensees. 

This orientation aligns with a broader strategic posture that I have previously described as that of a great enabling power. 

Rather than seeking to monopolize the digital high ground, China has invested in the material and institutional conditions that allow others to participate. Low-cost, efficient models suitable for deployment in resource-constrained environments matter more for much of the Global South than the latest closed frontier system optimized for data-center density in jurisdictions with abundant capital and relatively reliable power. Inclusive applications in agriculture, logistics, education, healthcare and public administration generate tangible development dividends. They also create network effects that favor continued cooperation over confrontation.

Underlying these software and application choices is a deepening materials and systems foundation. Progress in two-dimensional semiconductors, graphene-related advances and distributed energy technologies is shifting the parameters of what is feasible. 

Huawei's articulation of a τ (Tau) Scaling Law reframes semiconductor progress around reductions in time constants – signal delays, data movement and execution efficiency – rather than pure geometric shrinkage. When combined with innovations that improve energy efficiency and enable more distributed compute, the result is a pathway toward edge-capable systems that do not depend exclusively on centralized, energy-hungry hyperscale facilities.

These developments support the emergence of what I have termed Digital Westphalia, that is, sovereign digital ecosystems grounded in national data governance and technical autonomy, yet interconnected through open protocols and interoperable standards. Digital Westphalia does not reject globalization. It rejects the assumption that digital order must be administered through extraterritorial platforms and supply chains concentrated in a single jurisdiction. Nations retain the capacity to set rules for data localization, security, and local value creation while participating in cross-border flows on terms that do not subordinate their informational sovereignty.

This architecture is particularly consequential for the Global South. Countries that once faced a binary choice between dependence on proprietary Western platforms or technological lag now have practical alternatives. Open models, affordable hardware pathways, and cooperation frameworks oriented toward capacity building rather than exclusion lower the barriers to meaningful participation. Real-time digital payments systems, edge analytics and supply-chain integration become more attainable when the underlying intelligence layer is not priced or restricted as a strategic weapon.

The contrast in industrial logic is stark. 

The American model has prioritized speed of headline breakthroughs and the accumulation of proprietary advantage. China's approach has emphasized systemic efficiency, cost optimization, energy realism and the steady construction of a full technology stack. In the classic fable, the hare's early lead proves less decisive than the tortoise's consistent progress. In AI, the metrics that ultimately matter are not solely the size of the largest model or the capital raised in a funding round, but the ability to deploy capable systems widely, sustainably and productively across diverse economic contexts.

US regulatory escalation and technological blockades have produced the opposite of their intended effect in important respects. 

By restricting access to advanced components and seeking to isolate Chinese developers from global knowledge networks, they have accelerated indigenous innovation and reinforced the case for open alternatives. Attempts to police "adversarial distillation", or to impose unilateral standards, risk fragmenting the very innovation ecosystems that have historically driven progress. Double standards – professing openness while practicing exclusion – erode credibility and incentivize parallel institutions.

The global impact is already visible. 

Innovation cooperation has been chilled in some domains even as alternative collaborative channels expand. Industrial development in regions that cannot or will not accept permanent technological subordination is finding new avenues. The diffusion of low-cost, high-capability AI tools is democratizing access in ways that closed systems structurally cannot match. For many societies, the relevant question is not which nation possesses the single most advanced closed model, but which pathway enables the broadest application of intelligence to concrete developmental challenges.

China's practices in open-source release, inclusive deployment and engagement with global governance discussions illustrate a coherent alternative. They demonstrate that technological leadership need not be synonymous with enclosure. Capability can be advanced while simultaneously expanding the circle of participants who benefit from it. This is not altruism as foreign policy; it is a recognition that shared platforms and interoperable systems generate larger absolute gains than zero-sum contests over proprietary control.

The choice before the international community is therefore not merely technical or commercial. It is civilizational in scope. One path leads toward digital fortresses, heightened friction and the weaponization of knowledge. The other leads toward infrastructure for collective capability, respect for sovereign choices and the treatment of AI as a public good in the deepest sense. America continues to raise walls. China continues to pave roads. The traffic of global development will increasingly follow the latter.

The 2026 World Artificial Intelligence Conference invitation to treat AI as an international public good is not a rhetorical flourish. 

It is a practical proposition whose realization depends on the chosen developmental path. Walls may protect rents for a time. Roads enable the movement of ideas, applications, and opportunity across borders. In the long run, the civilization that understands this distinction will shape the character of the age of intelligence. 

(Cover via VCG)

Services consumption outpaced retail sales in the first half of the year, while investment in equipment and instruments surged over 8%, forming a powerful synergy in boosting domestic demand, Luo Zhiheng, chief economist and president of the Research Institute at Yuekai Securities.

This, he says, reflects the effectiveness of China's coordinated policy efforts. 

China's gaming market has leaped forward to match the best in the world, Remy Chapot, CEO and founder of The Node, tells CGTN's Qiu Yu at the China Digital Entertainment Expo. He also praises the dynamism and passion of China's gaming industry, and highlights the quality of "Black Myth: Wu Kong."

China's gross ocean product reached 5.5 trillion yuan (about $810.09 billion) in the first half (H1) of 2026, up by 5.1% year on year, according to data released by the Ministry of Natural Resources on Monday.

The amount accounted for 7.9% of the country's gross domestic product, the ministry said, noting that the marine economy is experiencing steady growth with a positive development momentum.

Meng Qinglei, an official with the ministry, said that since the beginning of this year, the supply of marine resources nationwide has remained stable, laying a solid foundation for the development of the marine economy.

Meanwhile, China's shipbuilding industry maintained strong growth during the January-June period. The industry saw its new shipbuilding orders, completed deliveries and order backlog increase by 105.2%, 34.8% and 37.1% year on year, respectively. The global market shares for these three indicators reached 73.9%, 55.4% and 63.3%, respectively, maintaining a leading position worldwide.

The sector continues to optimize product structure, achieving improvements in both quantity and quality of deliveries, the ministry said. In H1, over 40 large vessels such as container ships exceeding 10,000 TEUs, ultra-large crude oil carriers and large liquefied natural gas carriers were delivered.

A Chinese industry association has voiced strong opposition to the United States' decision to add 43 Chinese companies, including cotton textile firms, to the so-called "Uyghur Forced Labor Prevention Act Entity List," saying the move seriously violates the basic rules of international trade.

The China Cotton Association (CCA) said in a statement released on Saturday that the US allegations of "forced labor" lack factual and legal basis, noting that China's cotton industry has consistently followed a market-oriented and modern development path.

In Xinjiang, a major cotton-producing region in China, more than 90% of cotton harvesting is now carried out by machines, with highly automated and large-scale operations covering the entire industrial chain from planting and harvesting to processing and textile production, the association said.

The labor rights and interests of cotton farmers and industry workers are strictly protected by Chinese laws, and their employment choices are completely voluntary.

"There is no so-called 'forced labor,'" the statement said.

The US move disregards facts and imposes a "presumption of guilt" on Chinese companies, the association said, adding that the true intent behind such a move is to politicize and weaponize human rights issues in an attempt to contain the development of China's cotton and textile industries.

The sanctions will also undermine the stability of global cotton industrial and supply chains and infringe upon the legitimate rights and interests of Chinese companies, according to the CCA.

China's cotton industry is confident in and capable of overcoming challenges posed by external pressure, it said, noting that China has the world's most complete cotton and textile industrial chains, a vast domestic consumer market and an increasingly diversified international market layout.

The association said it will continue to support and safeguard the legitimate rights and interests of Chinese cotton and textile enterprises.

John Lee, chief executive of the Hong Kong Special Administrative Region (HKSAR), said on Sunday that the Northern Metropolis is designed as a strategic platform to elevate Hong Kong's industries, technology, and talent development through key initiatives like its university town.

Lee made the remarks when attending a district forum to listen to views and suggestions from members of local communities on Hong Kong's five-year plan and the chief executive's fifth policy address. The event drew about 130 participants from different backgrounds.

Speaking on urban development, Lee emphasized the need to systematically integrate various sectors, including drainage, emergency response and daily traffic management. He noted that systematic management, coupled with the use of technology, is essential to understanding current, mid-term and long-term challenges.

Public consultations for Hong Kong's five-year plan and the 2026 policy address were launched in June, and multiple consultation sessions have been held.

Editor's note: Cheng He is a CGTN economic editor. The views expressed in this article are the author's own and do not necessarily reflect those of CGTN.

Chinese memory chip maker CXMT made its debut on the STAR Market of the Shanghai Stock Exchange this week, drawing attention not only for its strong market performance, but also for what the IPO represents: China's progress in a strategically important semiconductor sector long viewed as a technological bottleneck.

Beyond the headlines about new billionaires created by the listing and the rise of a Chinese memory chip champion, another name has attracted widespread attention — the city of Hefei, which holds a significant stake in CXMT. The company's successful listing has once again put the spotlight on the so-called "Hefei Model," a government-led investment strategy that has helped transform the city into a rising hub for advanced manufacturing and high technology.

The Hefei Model refers to an industrial investment approach in which the municipal government uses state-backed funds to take equity stakes in promising early-stage companies, particularly in strategic sectors such as semiconductors, electric vehicles and advanced manufacturing. Rather than simply providing subsidies, the government acts more like a venture capitalist, sharing both risks and potential returns with companies.

The model has attracted attention several times over the past decade, most notably through Hefei's investments in electric vehicle maker NIO and display panel giant BOE Technology. In both cases, the city helped build industrial ecosystems around emerging companies, attracting suppliers, talent and related businesses.

What is particularly interesting about the latest CXMT story is not only the discussion about the success of the company, but also what was missing from much of the international debate: The familiar criticism that China's industrial rise is simply the result of state subsidies and unfair competition.

Why has the Hefei Model received less criticism?

One possible explanation is that the model resembles a form of venture capital investment more familiar to Western economies. Hefei's government has not simply provided unconditional financial support. Instead, it invests through equity participation, enters at an early stage of higher risks, and seeks financial returns when the companies are successful. In this sense, the government is not merely subsidizing production; it is making investment bets similar to those made by private venture capital firms.

Of course, government-backed investment and private venture capital are not identical. Governments may have different objectives, including industrial development, employment and strategic security. But the structure of the investment — taking equity stakes and sharing both upsides and downsides — makes the Hefei Model harder to be categorized simply as traditional industrial subsidies.

Another reason may be that the industries involved are increasingly viewed worldwide as strategically important sectors where governments can no longer remain completely passive.

The United States, for example, has moved away from a purely market-driven approach in semiconductors. The CHIPS and Science Act, signed in 2022, provides tens of billions of dollars in subsidies and incentives to encourage domestic chip manufacturing and strengthen supply-chain resilience.

The goal is not for Washington to operate semiconductor factories directly, but to reduce investment risks and encourage private companies to expand production in the US. The results can be seen in major projects by global industry leaders. Intel has committed to expanding manufacturing capacity in the US, including major projects in Arizona and Ohio. Taiwan Semiconductor Manufacturing Co. is building advanced fabrication facilities in Arizona with support from the CHIPS Act, while Samsung has expanded its semiconductor presence in Texas, creating a broader manufacturing ecosystem around its US operations.

Europe has also embraced a more active industrial policy approach. Facing challenges in areas such as batteries, clean energy and semiconductors, European governments have increased support for strategic industries. The European Union has promoted initiatives such as the European Battery Alliance, while countries including Germany and France have introduced incentives to attract battery factories and strengthen domestic supply chains.

For decades, Washington has championed the idea that markets should be the primary force allocating resources and often criticized countries that adopted different approaches. Yet repeated economic and financial crises have demonstrated that markets have their limitations, and governments have had to repeatedly step in as a stabilizing force during times of turmoil. More recently, competition in advanced technologies has further blurred the traditional divide between market economies and state-led models.

The global debate over industrial policy has therefore entered a new phase. The key question is no longer whether governments should intervene, but how they should intervene.

No model is guaranteed to succeed. Government investment can help create world-class industries and accelerate technological breakthroughs, but it can also lead to inefficient allocation of capital and support companies that fail to become competitive. Market-based incentives can mobilize private investment and preserve competition, but they may not always move quickly enough in strategic sectors where long-term investment and coordination are required.

The challenge for every country is to find the right balance between the visible hand of government and the invisible hand of the market — taking into account of its economic development stage, resource advantages and talent base.

For advanced economies facing increasing competition from China in high-end manufacturing and technology, understanding China's rise requires looking beyond the role of government support. Industrial policy matters, but it is only one part of the story. Other factors have also played a crucial role: A large pool of engineers, intense domestic competition, a massive consumer market, and highly integrated supply chains.

The future winners in global technology competition may not be those with the biggest subsidies, but those that can most effectively combine government strategy with market discipline and entrepreneurial innovation.

The People's Bank of China (PBOC), the country's central bank, said it will maintain accommodative monetary policy and keep liquidity ample, after Governor Pan Gongsheng chaired a mid-year policy review in Beijing on Saturday. 

Officials assessed first-half performance and laid out priorities for the coming months, stressing counter‑cyclical adjustments and new measures to boost domestic demand and high‑quality growth.

The central bank pledged to use a mix of tools — including reverse repos, medium‑term lending facilities, and bond transactions — to lower financing costs, while ramping up support for technology, green, and small enterprises. 

It also vowed to strengthen macro‑prudential oversight, tighten bond market regulation, and deploy policy levers to stabilize capital markets. 

Separately, the PBOC reiterated its commitment to financial opening‑up and international cooperation, while ensuring the system's robust and safe operation.

China has released a five-year plan for its national supply and marketing cooperative system, aiming to strengthen agricultural services and ensure food security for the 2026-2030 period.

The plan outlines 18 key tasks focused on ensuring food security and advancing rural revitalization, according to the All China Federation of Supply and Marketing Cooperatives.

By 2030, the system will build or renovate more than 100 national-level strategic fertilizer depots and about 1,000 county-level distribution centers in major grain-producing counties.

For this year, the system aims to build or renovate about 20 national-level strategic fertilizer depots and more than 200 county-level distribution centers, creating a smooth and efficient agricultural input distribution network to safeguard national food security, according to the federation.

The federation said the system will build or renovate 200 agricultural service centers this year, accelerating the development of emergency services such as grain drying and storage to reduce post-harvest losses.

The supply and marketing cooperatives are organizations that serve agriculture, rural areas and farmers under the leadership of the Communist Party of China. They are an important vehicle for the Party and the government to carry out work related to agriculture, rural areas and farmers, and a key force in advancing China's agricultural and rural development.

With a vast grassroots network across the country, the cooperative system serves as a critical link between urban and rural markets. It connects farmers with consumers, facilitates the distribution of agricultural products and supplies rural areas with essential production materials and daily necessities.

US companies recognize the strengths of China's economy and innovation system and are seeking to partner with Chinese companies to boost their competitiveness, Sean Stein, president of the US-China Business Council (USCBC), said on Friday.

Stein made the remarks ahead of a discussion and exchange event between a delegation of Chinese entrepreneurs led by the China Council for the Promotion of International Trade (CCPIT) and the USCBC and its member companies in Washington, D.C.

He said many American companies are eager to engage with Chinese partners through the event and are committed to deepening cooperation with Chinese companies.

On potential areas of cooperation, Stein said that beyond frequently mentioned industries such as agriculture and aviation, US businesses are eager to advance partnerships with Chinese companies in fields including financial services, life sciences, research and manufacturing.

He said that in recent conversations with American CEOs, "what they're talking about is they recognize some of the strengths of the Chinese economy and the Chinese innovation system, and what they're looking at is what can they learn from the Chinese system and how can they partner with Chinese companies and others to not just be more competitive in China, but to be more competitive in other countries and other regions around the globe."

Founded in 1973, the USCBC is a private, nonpartisan nonprofit association of around 270 American companies that do business in China.

First-half (H1) economic data from 31 Chinese provincial-level regions offer a closer look at how the world's second-largest economy is navigating 2026.

The picture is broadly resilient. All 31 regions recorded positive GDP growth, with most expanding by over 4.5%. While traditional economic powerhouses continued to anchor national growth, several central and western regions posted faster expansion, driven increasingly by advanced manufacturing, foreign trade and modern services. 

Economic powerhouses remain a stabilizing force

The largest provincial economies continued to underpin national economic momentum.

Guangdong and Jiangsu both entered the 7 trillion yuan club for the first time, reaching H1 GDPs of 7.23 trillion yuan ($1.01 trillion) and 7.04 trillion yuan, respectively. Shandong (5.32 trillion yuan) and Zhejiang (4.79 trillion yuan) followed, while Sichuan, Henan, and Hubei ranked fifth through seventh – placing three central and western provinces in China's top 10.

Growth performance among these leaders was equally robust. Zhejiang expanded 5.7%, while Shandong, Shanghai and Anhui grew 5.6% each. Jiangsu grew 5.2%, and Henan and Hubei each recorded 5% – all exceeding the national average of 4.7%.

Major economic provinces are the ballast stones for stable national growth, said Zhang Linshan, a researcher at the Chinese Academy of Macroeconomic Research, noting that competition among leading regions is intensifying as Anhui joined the national top 10.

Meanwhile, the drivers of strength are evolving. Zhang Yan, director of Research Department IV at the Xi Jinping Thought on Economy Study Center, highlighted that major provinces are shifting from scale to innovation advantages. Strong high-tech manufacturing in Henan and Hubei, alongside robust foreign trade in Guangdong and Zhejiang, demonstrates how top provinces are both stabilizing growth and cultivating new quality productive forces.

Central and western regions accelerate their catch-up

Provincial data also indicate a steady narrowing of regional development gaps.

Xizang led the nation with 6.3% growth. Anhui, Henan, Hubei and Qinghai grew by 5% or more, while Gansu and Ningxia expanded 4.9% each.

Central and western regions have shown differentiated growth, with some leading nationwide and inland opening up gaining momentum, Zhang Linshan pointed out.

High-tech manufacturing has become a major growth engine in central China. High-tech value-added increased 26.1% in Henan and 36.8% in Hubei, where the optoelectronic information industry has become a key pillar. Western regions are also leveraging geographic and industrial strengths: Xinjiang's export delivery value from major industrial enterprises surged 2.3-fold, while Chongqing recorded an 11.8% increase.

Trade and innovation drive momentum

China's foreign trade in goods exceeded 25 trillion yuan in H1, up 16.9% year-on-year. Mechanical and electrical products accounted for nearly two-thirds of exports, benefiting provinces with comprehensive industrial supply chains.

Guangdong and Jiangsu remained key trade engines, while Zhejiang upgraded its trade structure. Zhejiang's foreign trade grew 8.6% (exports up 9.2%), boosted by expanding trade with emerging markets like ASEAN and Africa.

Anhui exemplifies how industrial upgrading drives trade. Its high-tech manufacturing sector contributed 55.9% of H1 industrial growth. Producing 1.69 million vehicles – the highest nationwide – Anhui saw its trade rise 34.3%, with exports of the "new three" (electric vehicles, lithium-ion batteries and photovoltaics) more than doubling.

Luo Zhiheng, chief economist at Yuekai Securities, noted that the AI supply chain accounted for roughly 22% of China's H1 exports and half of total export growth. This expansion spans core hardware like data-processing equipment to supporting sectors like power equipment and liquid-cooling systems.

Services and consumption add new momentum

Services represent another critical pillar. Nationally, the sector grew 5.2% in H1, accounting for 59.5% of GDP and contributing 66.1% of total growth.

In Beijing and Shanghai, modern services – such as information, finance and business services – led expansion. Nationwide, integrating advanced manufacturing with R&D, logistics and information services is unlocking fresh productivity gains.

Local governments are also unlocking domestic demand through new consumption scenarios. In Jiangxi, retail sales of communication equipment, office supplies and home appliances registered double-digit growth, alongside strong rural consumption.

Meng Xia, an associate professor at China University of Geosciences (Wuhan), noted that digital transformation, manufacturing-service integration and AI commercialization will further expand China's long-term growth potential.

The H1 data shows that major economic provinces remain a key force underpinning China's overall economic stability, while advanced manufacturing, foreign trade competitiveness and modern services are reshaping the landscape of regional economic competition. Looking ahead, experts believe expanding domestic demand, stabilizing foreign trade, upgrading traditional industries and nurturing emerging sectors will be key to sustaining the momentum of recovery and improvement across the country.

At a meeting on Thursday, the Political Bureau of the Communist Party of China Central Committee reviewed the country's economic performance during the first half of 2026 and outlined key priorities for the months ahead. CGTN reporter Dai Kaiyi speaks with Tian Xuan, Dean of the Guanghua School of Management at Peking University, to examine the meeting's major policy signals and what they could mean for the trajectory of China's economy in the second half of the year.

China and the US are the world's two leading artificial intelligence (AI) powers, but they have taken distinct paths, Jeffrey Towson, digital and AI management consultant at TechMoat Consulting, told CGTN in an interview. He said China is opening its AI ecosystem to the world through collaborative innovation and open-sourced development. 

Editor's note: Yang Hangjun is a professor and executive dean at the Graduate School of Excellence of University of International Business and Economics. This article, translated from its original in Chinese, reflects the author's opinions and not necessarily those of CGTN.

According to a recent survey by Nikkei, Chinese companies expanded their market share in 25 of 67 key global categories in 2025, claiming the top spot in 19 of them.

CATL captured 39.2% of the global electric vehicle (EV) battery market, while BYD overtook Tesla with a 14.5% share of the pure EV segment. 

Additionally, Huawei's global smartwatch market share rose to 17%. 

This upward trajectory is all the more remarkable given that it occurred against a backdrop of US tariffs on Chinese goods that reached as high as 145% at one point.

How domestic competition translates into global competitiveness

China's global industrial expansion is often attributed to a "low-price onslaught." 

Yet if competitiveness were driven solely by price, Chinese firms would struggle to sustain gains in market share in technologically demanding sectors such as power batteries and new energy vehicles (NEVs). 

Topping 19 global categories is less a function of cheap labor and more a report card forged in the crucible of China's intensely competitive domestic market.

Market competition is a vital mechanism for driving efficiency. With its ultra-large-scale market, multi-tiered demand structure and rapid product iteration cycles, China has nurtured the world's most fiercely competitive industrial ecosystem. 

In the NEV sector alone, over a hundred brands once vied for dominance. Cutthroat price wars, coupled with heavy research and development (R&D) spending and mounting cost pressures, have kept industry profit margins razor-thin.

Yet it is precisely this unforgiving environment that has compelled companies to shorten R&D cycles, optimize supply chain management and drive down production costs. 

The cost-effectiveness advantage Chinese products now enjoy does not come from sacrificing quality for lower prices; rather, it reflects the ability to deliver superior performance and user experience at any given price point.

Market reallocation amid high tariffs

While steep US tariffs have redirected trade flows, they have failed to blunt the edge of Chinese manufacturing. 

China's trade surplus hit a record high of approximately $1.2 trillion in 2025.

A key driver has been the accelerated pivot by Chinese enterprises toward emerging markets in Southeast Asia and beyond, building a more diversified global sales network.

This market reorientation has brought tangible benefits to overseas consumers. 

In Thailand, Chinese EVs have shrunk the price gap with combustion-engine vehicles to below 5%.

For ordinary households in these markets, the barrier to going electric has dropped dramatically – a clear proof that the green transition is no longer the exclusive preserve of developed nations. 

Across Southeast Asia, EV sales surpassed 500,000 units in 2025, doubling year on year – with Chinese brands playing an indispensable role.

Localized investment broadens scope for cooperation

Equally noteworthy is the fact that Chinese companies are exporting far more than finished goods. 

BYD's plant in Rayong, Thailand, has an annual production capacity of 150,000 vehicles and is expected to create around 10,000 jobs, while helping develop local manufacturing and supplier networks in Thailand. 

Meanwhile, CATL's battery project in Indonesia spans the entire value chain – from nickel processing to manufacturing and recycling. 

As Chinese firms shift from pure trade to investment, and from selling products to co-building productive capacity, host countries gain jobs and technology transfer, while Chinese enterprises move closer to end markets and strengthen supply chain resilience.

That said, surging imports can also place adjustment pressures on local incumbents. 

Mutually beneficial outcomes do not automatically follow from export growth. 

Chinese companies must deepen local procurement and talent development while strictly adhering to host-country labor and environmental standards.

Host governments, in turn, should provide stable, transparent industrial policies and a level playing field to foster durable partnerships between foreign investors and domestic supply chains.

The top 19 global rankings are not the finish line. 

Chinese manufacturing is evolving from exporting products to exporting brands, services and standards – moving from "selling to the world" to "producing with the world." 

Only when overseas consumers gain access to higher-value products, and when local businesses and workers actively participate in and benefit from industrial growth, will this market expansion rest on a sustainable foundation. 

Only then can China truly achieve the vision of "sharing prosperity with the world."

As heat waves sweep across the Northern Hemisphere, China's summer economy is demonstrating remarkable vitality and injecting strong momentum into global growth. Please take the survey and share your views.

Mexican businesses are facing higher costs and supply chain disruptions as trade negotiations with the United States continue. Small manufacturers and wholesalers say tariffs on imports from non-free trade agreement countries have driven up prices for textiles and other goods, while changing regulations have added uncertainty.

Although the U.S. has extended the deadline for a broader trade agreement with Mexico by 90 days, analysts say businesses remain concerned about future trade policies and continued pressure on Mexico to tighten restrictions on imports. CGTN’s Alasdair Baverstock reports from Mexico City.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

The combination of AI and games can revitalize cultural and tourism resources and also spawn brand new consumption scenarios, Yi Di, senior vice president of Chinese game maker Perfect World Group, told CGTN's Qiu Yu at the ongoing China Digital Entertainment Expo & Conference (CDEC) or "ChinaJoy".

China and the European Union are preparing for a second round of high-level trade and investment talks this autumn.

China's Ministry of Commerce says working teams from both sides have held more than 20 rounds of consultations over the past month as they work toward practical solutions to trade and economic issues.

Editor's Note: Xin Ge, a special commentator for CGTN, is a professor at the School of Public Administration and Policy, Shanghai University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CGTN.

On Thursday, the Political Bureau of the Communist Party of China Central Committee convened to take stock of the economic landscape and chart the course for the remainder of the year. For seasoned observers of Beijing's policy pulse, the shift in tone from the April 28 meeting is both striking and instructive. It reveals a sharper, more dialectical grasp of China's economic realities and a confident, well-calibrated roadmap toward sustainable and high-quality growth.

What stands out is the clarity of direction. China is accelerating the transition between old and new growth engines, doubling down on domestic demand, deepening capital market reforms, and taking an institutionalized stand against cutthroat, "involution-style" competition. 

Back in April, the sentiment centered on a "strong start," with key indicators beating expectations. Three months later, the narrative has developed. While fundamentally optimistic, the July meeting introduces a crucial nuance: the economy now exhibits a "development trend of new momentum and optimized structure." It acknowledges the structural friction of "strong supply, weak demand" and the growing pains of a economy in transition. By shifting the benchmark from purely meeting quantitative targets to achieving a qualitative leap, the leadership shows macroeconomic management grounded in clear-eyed analysis and steady resolve. 

This translates into a more assertive policy stance. Where April's emphasis was on "using policies well," July's language escalates to "giving full play to existing policy efficiencies" while planning pragmatic "incremental policies" to ramp up counter-cyclical adjustments. In practice, this means three things: existing fiscal measures must rapidly turn into concrete projects on the ground; new policy tools stay ready depending on how the third quarter unfolds; and markets can expect fiscal expansion working in tandem with monetary support.

The directive to accelerate fiscal spending and bond fund usage, particularly for major projects and the equipment renewal and consumer trade-in drives, means the second half of the year will see a concentrated payoff from these strategic investments.

The domestic demand strategy shows perhaps the clearest evidence of this forward momentum. The April goal of "tapping potential" has become "actively expanding" demand alongside supply-side optimization. Instead of broad strokes, expect targeted, demographic-specific approaches, expanding premium supply tailored to middle- and low-income households while nurturing the silver economy.

At the same time, the "Six Networks" encompassing water systems, next-generation power grids, computing hubs, advanced communications, urban pipelines and logistics have moved decisively past the planning stage into substantive construction, laying the physical backbone for a digital and smart economy that will shape growth for years to come.

Industrial upgrading aims for a generational leap, moving from following to leading. Building on the "AI+" strategy, the government is now stressing sustained, long-term support for basic research, pushing policy focus back to the roots of innovation. By fostering frontier technologies and future industries, China is building a full innovation chain: cutting-edge technologies evolve into future industries, which then mature into emerging pillars that pull traditional sectors upward.

The fight against "involution-style" competition has also moved from reactive measures to systemic governance. 

Alongside the drafting of a unified national market regulation, the approach is shifting from temporary administrative crackdowns to a rule-based, institutionalized framework. For leading sectors like photovoltaics and lithium batteries, key components of the "New Three" export categories, capacity clearing and quality improvement will accelerate within this regulatory framework, ensuring that China's manufacturing strength is matched by fair, rules-based competition.

On the external front, China's posture is shifting from managing shocks to shaping opportunities. 

While April focused on weathering external headwinds, July emphasizes expanding space for mutually beneficial international trade and developing service trade. This marks a significant strategic pivot: using high-level opening up to navigate global uncertainties, moving from a global goods-export powerhouse toward a stronger services-trade position, and embracing multilateralism through proactive regional integration rather than pulling back.

Risk management is tightening across the board. In real estate, the wording shifted from striving to stabilize to the more direct imperative to stabilize, backed by comprehensive debt-resolution packages. For the capital market, the focus moved from stabilizing confidence to deepening investment and financing reforms. Even local financial institutions face a tougher, more precise mandate: "reform, risk resolution and quality improvement," favoring well-planned mergers and operational consolidation over simply keeping every institution open.

These shifts in policy language, from "strong start" to "new kinetic energy," from "using policies well" to "maximizing stock and planning increments," reflect a leadership that sees the economy in all its complexity. 

With proactive fiscal measures, accommodative monetary policies and expanded domestic demand working together, the Chinese economy is well-positioned to solidify its development momentum in the latter half of the year. The groundwork being laid goes beyond short-term market stabilization; it sets the stage for a robust, structurally sound entry into the 15th Five-Year Plan.

Urumqi Tianshan International Airport has rolled out 16 autonomous shuttle buses for passenger transport, marking the first large-scale crewed self-driving project at a Chinese hub airport. Braving heat, sand, and cold, the shuttles navigate via cloud-controlled systems and join over 100 automated units that already handle 90% of cargo. With 76.4% new-energy vehicles slashing 70,000+ tonnes of carbon dioxide yearly, this pilot is redefining airport mobility as smart, green, and driverless.

Editor's note: Lin G. is a CGTN economic commentator. The views expressed in this article are the author's own and do not necessarily reflect those of CGTN.

China's latest economic policy assessment points to a shift in the drivers of growth and the structure of the economy. At a meeting of the Political Bureau of the CPC Central Committee on Thursday, the Chinese leadership noted that the current economic situation is characterized by "new growth drivers and improving economic structure." Coming at the start of China's 15th Five-Year Plan (2026-30), this mid-year assessment offers an important reading of the economy's trajectory.

Why has China been able to drive such a large-scale shift to technology-driven new growth drivers? The answer lies in a distinctive development model that combines an effective government with a dynamic market, turning strategic priorities into market opportunities and technological advances into industrial capacity. This model is now creating what can be called "China Opportunity 2.0" — a new phase in which China's economic transformation is generating new opportunities for the global economy.

The "state-enabled market dynamism": How China turns strategic direction into structural upgrading

China's ability to upgrade its economic structure rests on a distinctive combination of an effective government and a dynamic market. The government provides strategic direction, coordinates long-term priorities and creates the conditions for emerging industries to develop. The market brings together capital, technology and entrepreneurial initiative, and determines which technologies and business models can ultimately scale.

The key to this model lies in the connection between the two. China has developed a range of institutional mechanisms to connect these two forces, allowing public policy to enter the market through investment, industrial policy and other market-oriented instruments. This can be described as state-enabled market dynamism.

Government guidance funds illustrate this mechanism particularly well. They translate strategic objectives into equity investment. Their role is fundamentally different from administrative allocation through direct orders. As limited partners, government guidance funds can provide capital and support while leaving investment decisions and corporate operations to market-oriented institutions.

This institutional connection also helps explain the active participation of private enterprises in China's structural upgrading. Government coordination helps create the conditions and direction for new industries; market competition identifies viable technologies and business models; successful commercialization expands industrial capacity; and that expanding capacity creates new markets and demand.

This is the core of China's structural upgrading model: Different forces across the economy are pulling in the same direction, rather than remaining fragmented across competing interests and priorities. Resources can be concentrated on emerging industries and long-term goals, creating a powerful collective momentum for structural transformation.

"China Opportunity 2.0": From accessing China's market to joining China's innovation and industrial ecosystem

China's economic transformation is creating a new kind of opportunity for the world — one that can be called "China Opportunity 2.0." The term reflects a fundamental shift in what China offers to the global economy. Around three decades ago, the "China Opportunity 1.0”was largely built around China's vast market and cost-competitive labor. Today, the "China Opportunity 2.0" is centered on sharing the benefits of China's industrial upgrading, with two key dimensions.

The first dimension is sharing China's large-scale innovation sandbox. One of China's most significant strategic assets is its industrial commons — a shared pool of technical knowledge, skilled labor, supplier networks and process innovations that has been scaled to an extraordinary national level. Its strength comes from the density and connectivity of millions of factories, laboratories, research institutions and engineering teams, where knowledge from different sectors and stages of production constantly collides, fuses and evolves. The resulting feedback loops accelerate the speed at which ideas are tested, refined and transformed into commercial products, giving China an exceptionally fast knowledge turnover rate.

For global companies and investors, this changes the logic of participating in China. The increasing value of the Chinese market lies in being part of this system of innovation. The know-how embedded in this system is deeply contextual and cannot simply be transferred through a manual, a patent or a licensing agreement. Staying outside it can therefore mean missing access to the knowledge, technologies and industrial capabilities that are shaping the next wave of global innovation. Participation becomes a strategic necessity: Companies come to China not only to sell or invest, but to remain connected to one of the world's most dynamic innovation and industrial frontiers.

The second dimension is sharing China's full industrial chain — and the security that comes with it. China is increasingly providing not only finished products, but also the machinery, components, materials, technologies and industrial capabilities that allow production systems elsewhere to function. In this sense, China is evolving from a "world factory" into a factory for factories — an industrial anchor that can help partners build and strengthen their own productive capacity.

In an increasingly fragmented global economy, supply-chain security depends on access to a complete and resilient industrial system. Through platforms such as the Belt and Road Initiative, partners can connect to China's broad manufacturing network, gaining greater resilience against external disruptions.

Conclusion: From China's economic upgrade to a new global opportunity

China's economic transformation is reshaping the meaning of economic opportunity in the 21st century. Its experience shows how a country can turn strategic direction and market dynamism into a continuous process of structural upgrading. The significance extends beyond China: The real promise lies in opening up space for more countries to participate in the next wave of globalization.

China's manufacturing purchasing managers' index (PMI) stood at 49.2 in July, down 1.1 points from the previous month, according to data released by the National Bureau of Statistics (NBS) on Friday.

Huo Lihui, a chief statistician with the NBS, attributed the fall to multiple factors.

"The factors include a relatively high base from the rapid manufacturing growth in the previous period and the traditional off-season for production in some manufacturing industries," said Huo.

Despite the overall slowdown, the production side of China's manufacturing sector remained resilient. PMI readings for equipment manufacturing and high-tech manufacturing reached 51.4 and 53.3, respectively, both maintaining expansion.

Industries including general equipment manufacturing and computer, communication and electronic equipment manufacturing recorded production and new order indexes above 53.0, reflecting strong market activity and relatively fast growth in supply and demand, according to Huo.

Meanwhile, China's non-manufacturing business activity index came in at 49.0 in July, down 1.2 points from the previous month.

Among service industries, the PMI readings for postal services, telecommunications, broadcasting and satellite transmission services, as well as culture, sports and entertainment, remained in the high prosperity range of above 55, the data revealed.

As weather disruptions gradually ease and summer consumption continues, the construction sector is expected to recover, while consumption-related services are projected to continue improving, noted He Hui, vice-president of the China Federation of Logistics and Purchasing. Together, these factors are expected to support a rebound in overall non-manufacturing activity, He added. 

(With input from Xinhua)

China has set out clear economic priorities for the second half of 2026, striving to pursue sustained innovation-driven, high-quality and sound economic development, and getting the 15th Five-Year Plan period (2026–2030) off to a good start.

At a meeting on Thursday, the Political Bureau of the Communist Party of China (CPC) Central Committee reviewed the economy's first-half performance, analyzed the current economic situation and outlined priorities for the remaining months of the year.

Per the meeting, to steer economic work well through the second half of 2026, macroeconomic policies should be more forceful and effective, and pragmatic and workable incremental policies will be introduced in a timely manner.

Structural progress in H1, confidence despite challenges for H2

Since the beginning of 2026, China's economy has embraced new growth drivers and an improved economic structure, having effectively weathered various external shocks and internal challenges, it was noted at the meeting.

China's gross domestic product (GDP) grew by 4.7% year on year in the first half of the year, keeping pace with the target set at 4.5%-5% for the full year.

Structurally, value-added manufacturing rose to 26.2% of GDP, retail penetration of new energy vehicles surpassed 60% for three consecutive months, and new growth drivers spearheaded by high-end manufacturing, digital economy and modern services contributed over 40% to growth, according to the National Bureau of Statistics (NBS).

It was emphasized at the meeting that high priority must be given to addressing current economic difficulties and challenges, and that it is essential to remain confident, meet such difficulties head-on, and make good use of various opportunities and advantages to promote steady and sustained high-quality development.

Zhang Linshan, a researcher at the Chinese Academy of Macroeconomic Research, said the meeting's key assessment offers a realistic framing of China's current economic conditions.

"It recognized the positive momentum led by new growth drivers while making a science-based evaluation of structural challenges in high-quality development," Zhang told the Xinhua News Agency. "This will help bolster confidence and stabilize market expectations."

He added that, with ample room for policy response, rapid expansion in new growth drivers, and a surge of market demand in both quantity and quality, China retains solid underlying fundamentals for its long-term economic growth.

Macro policy outlook, and room for incremental policies

It was determined at the meeting that macroeconomic policies should be more forceful and effective with a view to better advancing the implementation of major national strategies and enhancing security capacity in key areas, as well as promoting large-scale equipment upgrades and consumer goods trade-in programs. Pragmatic and effective incremental policies will be introduced in a timely manner, it was noted.

The need to effectively implement a more proactive fiscal policy and an appropriately accommodative monetary policy, comprehensively deploy monetary tools and adjust them in a timely manner, and optimally implement joint fiscal-monetary coordination to boost domestic demand were also underscored.

Dong Yu, executive vice president of the China Institute for Development Planning at Tsinghua University, said the key to macro policy lies in precision and effectiveness.

"Aligning a more proactive fiscal stance with moderately loose monetary settings enhances consistency and effectiveness across macro policies. This coordinated approach can lift market expectations and support continued structural improvement," he explained.

Yang Zhiyong, president of the Chinese Academy of Fiscal Sciences, said newly deployed measures would enable fiscal policy to deliver maximum effectiveness.

Tian Xuan, dean at the Guanghua School of Management of Peking University, said that the flexible and effective application of monetary instruments that leverage the synergy of both incremental and existing policies to reinforce counter-cyclical regulation will foster a supportive financial environment for high-quality growth.

Consumption, investment and AI

Targeting a further boost in domestic demand, measures to increase high-quality supply catering to varied consumer groups and tap into untapped potential in services spending were underlined at Thursday's meeting.

Services consumption is rapidly driving China's retail growth. According to NBS data, service retail sales grew 5.4% from January to May compared with the same period last year. In 2025, service spending accounted for 46.1% of total per capita consumption expenditure, nearly half of all household spending.

"Demand for services is surging nationwide, but high-end service supply still falls short," said Zou Yunhan, deputy director of the macroeconomic research office at the State Information Center under the National Development and Reform Commission (NDRC), China's top economic planner.

Addressing structural supply-demand mismatches as outlined at the meeting, and satisfying and generating new demand via upgraded supply, will widen scope for domestic consumption and unlock latent economic momentum, Zou added.

Building on priorities set at April's CPC leadership meeting, further efforts were urged at the latest meeting to advance the planning and development of the "Six Networks" infrastructure initiative.

The initiative spans six strategic areas: water, new-type power grids, computing power, next-generation communications, urban underground pipelines and logistics. The NDRC forecasts investment in these networks will top 7 trillion yuan (approximately $1.035 trillion) throughout 2026.

Sheng Lei, deputy director of the NDRC's State Information Center, said the "Six Networks" integrate digital, intelligent and green technologies, bringing about a critical shift away from expansion focused on scale toward improvements in quality and efficiency.

The initiative would tackle infrastructure bottlenecks and foster new growth drivers, Sheng told China Media Group.

Sun Xuegong, director-general of the department of policy study and consultation at the Chinese Academy of Macroeconomic Research, said if implemented, the projects under the initiative will provide strong support for overall investment growth throughout the year.

Deeply implementing the AI Plus Initiative was also called for at the meeting, in order to foster new forms for the smart economy and improve the governance system for artificial intelligence, a vital driver for building a modern industrial system.

Sun said the latest meeting has reiterated the push for fostering new forms for the smart economy, a concept that first appeared in this year's government work report, adding that it has become an increasingly important platform for cultivating new quality productive forces.

More balanced trade growth

Expanding mutually beneficial international economic and trade cooperation, vigorously developing trade in services and advancing more balanced trade growth were also called for at the meeting.

China has been actively promoting the balanced development of import and export. As the primary export destination for nearly 80 countries, China's scale of import has ranked second in the world for 17 years in a row, according to the Ministry of Commerce.

In total, China has extended zero-tariff treatment to 63 countries, and is also the first major economy to give zero-tariff treatment for 100% tariff lines to all the African countries and all least developed countries that have diplomatic ties with China.

China is also the only country to host an international import expo, reaching intended deals worth over $580 billion in total during the past eight editions, according to the Ministry of Commerce. It is also carrying out the "Export to China" series of events, stepping up efforts to "buy global" and help more quality products and services around the world enter the Chinese market.

Lan Qingxin, a professor at the University of International Business and Economics, said further expanding and diversifying China's network of trading partners is key to stabilizing trade volume, optimizing trade structure and fostering balanced trade development.

Going forward, China will make continued efforts to address both its own domestic needs and global expectations, and strengthen trade in services, build open platforms and participate in the formulation of international rules, Lan said, adding that these steps will unlock new drivers for trade growth and create new space for win-win cooperation.

Chinese artificial intelligence (AI) startup Moonshot AI on Monday fully open-sourced its latest flagship large language model, Kimi K3, marking another milestone in China's rapidly expanding open-source AI ecosystem.

With 2.8 trillion parameters, Kimi K3 is currently the world's largest open-source AI model by parameter count.

The release includes the model's complete weights, a technical report and three underlying infrastructure technologies used to train the model, allowing developers worldwide to download, deploy and further develop it locally.

While China has previously open-sourced AI models, this is the first time a flagship model at the 2.8-trillion-parameter scale has been fully released to the global developer community.

China's open-source AI accelerates

China's pace of open-sourcing large AI models has accelerated significantly this year, with several leading AI companies making their flagship models publicly available.

Within just six months, multiple Chinese developers have opened access to their top-tier foundation models.

According to Hugging Face's State of Open Source on Hugging Face: Spring 2026 report, Chinese-developed open-source models account for 41% of global downloads.

The report also showed that the top six most-called large language models worldwide are all developed by Chinese teams. Over the past 12 months, Chinese models have held the global record for the largest open-source model for nine months, maintaining the fastest pace of iteration.

From trillion-parameter models last year to the emergence of 1.6-trillion- and now 2.8-trillion-parameter open-source models, China has repeatedly set new records for the scale of open-source AI models.

China's open-source AI ecosystem now spans models ranging from hundreds of millions to hundreds of billions of parameters. Smaller models can run offline on smartphones and industrial equipment, while larger models are capable of handling complex research and analytical tasks, providing options for both edge devices and large enterprises.

From open models to industrial applications

Unlike closed-source models, which allow users to access AI capabilities only through service providers, open-source models make their model weights publicly available, enabling developers to download, deploy and customize them for their own applications.

China's open-source AI models have expanded beyond general-purpose assistants into industry-specific applications.

Dedicated open-source models have been developed for sectors including automobiles, machinery manufacturing, electric power and healthcare, embedding industry expertise and professional knowledge directly into AI systems and helping bridge the gap between general-purpose models and real-world industrial applications.

According to official data, cumulative downloads of Chinese open-source AI models have exceeded 10 billion, the highest in the world. Industry statistics show that six out of every 10 large-model downloads globally now involve models developed in China.

China's open-source AI ecosystem has evolved from isolated technological breakthroughs into a more comprehensive and mature ecosystem, according to the report.

As the technology continues to mature and deployment barriers fall, AI is moving beyond research laboratories and becoming increasingly integrated into manufacturing, energy, services and other sectors of the real economy, driving industrial upgrading and helping reduce business costs.

The open-source approach has also lowered barriers to industrial AI adoption, enabling large language models to evolve from general conversational tools into productivity tools capable of executing tasks, supporting industrial operations and improving efficiency across manufacturing, energy, transportation and finance.

Policy support

Zhong Xinlong, an associate researcher at the Future Industries Research Center of the China Center for Information Industry Development, said that in the past, advanced AI models were largely controlled by a small number of closed-source platforms, leaving enterprises to purchase AI capabilities.

As open-source models mature, companies can build customized AI applications by combining their own data, business processes and industry knowledge, creating solutions better suited to specific scenarios, he said.

China is also strengthening policy support for open-source AI.

Earlier this year, China's Ministry of Industry and Information Technology and seven other government departments jointly issued an implementation guideline for the "AI Plus Manufacturing" initiative.

The document identifies the development of high-level open-source AI communities and the deployment of benchmark open-source projects as key priorities. By 2027, it aims to promote the deep application of three to five general-purpose large models in manufacturing, build 100 high-quality industrial datasets and expand AI deployment across 500 representative industrial scenarios.

Zhong said open-source AI models are shifting global AI competition from dominance by a handful of technology giants toward broader industrial competition.

"AI sovereignty is becoming an important policy priority for many countries," he said. "Open-source development is expanding participation and enabling more languages, regions and industries to join the AI ecosystem."

China now holds 60% of the world's AI patents, the highest share globally. According to estimates by the Ministry of Industry and Information Technology, the country's core AI industry exceeded 1.2 trillion yuan in 2025, with more than 6,200 AI enterprises.

As China's open-source ecosystem continues to expand, AI is expected to become more deeply embedded across the real economy, providing sustained momentum for new industrialization and the high-quality development of the digital economy.

Valuation concerns and liquidity pressure from the CXMT IPO have pushed some Chinese semiconductor stocks sharply lower, says Hong Hao, the managing partner and chief investment officer of Lotus Asset Management. He adds that many remain globally competitive, and the recent correction could create fresh opportunities as investor confidence returns to the sector.

Chip manufacturing companies like CXMT require long development cycles and significant investment, making early financial projections a limited guide, He Miao, deputy general manager of Shanghai SSCI Leading Private Equity Fund Management, tells CGTN. She explains how investors can accurately assess the true value of long-horizon projects.

China is moving beyond supporting individual companies to building full industrial clusters, according to He Miao, deputy general manager of Shanghai SSCI Leading Private Equity Fund Management. She says the country's support for high-tech sectors such as semiconductors now extends across chip design, manufacturing and other critical links, helping the whole supply chain grow together and reducing weak points.

CXMT's IPO was priced to support a successful market debut and leave room for future performance, says Hong Hao, the managing partner and chief investment officer of Lotus Asset Management. He says rising demand for domestically produced chips across China’s semiconductor and artificial intelligence industries has strengthened the company's strategic appeal and helped drive strong investor interest.

CXMT's earnings could more than double this year and continue to grow strongly in the coming years, according to Hong Hao, managing partner and chief investment officer of Lotus Asset Management. He says faster profit growth could make its valuation more attractive.

As CXMT makes its debut on Shanghai's STAR Market, the listing is drawing attention far beyond the trading floor. As China's top DRAM producer, CXMT sits at the center of the country's push to strengthen its semiconductor capabilities and build a more resilient technology ecosystem.

What does the IPO mean for investors, the capital market and the future of the global memory-chip industry? Join us on BizTalk as we explore market forces, policy priorities and the roadmap to technology self-reliance behind the landmark listing.

China's continuous investment and innovation in the new energy sector have made the global green transition more viable, while its goods production has improved consumer choice worldwide, said Tu Xinquan, professor and dean of the China Institute for WTO Studies at the University of International Business and Economics, speaking about "China Opportunity 2.0". 

Editor's note: This article is translated from Chinese, reflecting the author's opinions and not necessarily the views of CGTN.

In the wide landscape of industrial investment by China's local governments, Hefei City is undoubtedly among the most talked-about cities. From betting on BOE Technology in 2008, to providing "timely support" to NIO in 2020, then to CXMT's listing on the STAR Market in 2026 — where it achieved a market capitalization of one trillion yuan — Hefei has earned the label of "the most impressive venture capital city" through a series of "legendary" moves.

However, Hefei officials have repeatedly emphasized: "We are not venture capitalists; we are industrial investors. This is not gambling; it is hard work." This seemingly contradictory statement precisely reveals the core of the "Hefei Model"—it is not a capital game pursuing short-term financial returns, but rather a systematic industrial investment methodology centered on "attracting capital through investment," underpinned by patient capital, and supported by full-life-cycle services.

Investment logic: Not "venture capital " but "industrial investment"

Outsiders often simplistically dismiss Hefei's investment activities as "gambling," but a deeper analysis reveals that every move Hefei makes follows a rigorous industrial logic.

First is the industrial chain mindset of "filling chain gaps where they need." Hefei's investments do not blindly chase trends but instead focus on "filling gaps, extending, and strengthening the chain" for the local industrial base. The investment in BOE in 2008 was driven by urgent needs of Hefei—as the "capital of home appliances"—to address its reliance on imported display screens; the investment in CXMT in 2016 aimed to meet the pressing demand for memory chips in industries such as home appliances and automobiles; and the investment in NIO in 2020 was a natural extension of Hefei's traditional automotive industry's transition to new energy. This "chain-based" approach aims to cultivate an entire "industrial forest," rather than just a single "towering tree."

Second is the strategic resolve demonstrated by "counter-cyclical investment." Unlike traditional venture capital, which pursues short-term quick wins, Hefei has shown patience that transcends short-term political achievements. Take CXMT as an example: from the project's launch in 2016 to its IPO in 2026, Hefei's state-owned capital stood by the company through nearly a decade of running under deficit. During the industry's downturn from 2022 to 2024, when market capital was fleeing, Hefei's state-owned capital not only refrained from divesting but actually increased its investment. This "cross-term" patient capital stands in stark contrast to the short-sightedness of most local governments, which demand visible returns within a single term.

Finally, there is a professional team that understands the industry and knows how to invest. Hefei has cultivated a professional team that is well-versed in both industry and finance, and whose decision-making logic is entirely market-driven. When investing in NIO, the decision-making team not only conducted an in-depth analysis of national automotive industry policies but also rigorously evaluated NIO's technological advancements and commissioned professional institutions to carry out comprehensive due diligence. This principle of "prioritizing expertise and not investing without understanding" ensures that every investment is grounded in clear industry logic.

Institutional safeguards: Error-tolerance mechanisms and a closed-loop exit process

The Hefei Model's sustained operation is inseparable from its unique institutional safeguards.

On one hand, Hefei has established an institutionalized error-tolerance mechanism. As early as 2014, Hefei was among the first in the country to propose the concept of "exemption from liability for due diligence and tolerance for failure," with the error tolerance rate for angel investment funds reaching up to 50%. No local entity or individual has ever been disciplined for investment failures. This market-oriented logic — that "investment losses are normal for businesses" — has broken the "term-of-office mentality" among local officials, who previously sought only to prefer a safe path over bold innovation, thereby providing the necessary room for trial and error in industrial investment.

On the other hand, Hefei has built a closed-loop capital cycle of "investment–exit–reinvestment." Nearly all investments in major projects in Hefei are market-based equity investments rather than grants. Once the portfolio companies mature, state-owned assets in Hefei will exit in an orderly manner through means such as IPOs, equity transfers, or buybacks by the companies themselves, channeling the returned capital into the next round of project investments. For example, in the BOE project, state-owned assets obtained substantial cash returns after reducing its stake in batches; in the NIO project, partial divestment immediately generated cash flow and yielded a net profit. This mechanism of "using success to offset failure" ensures the rolling appreciation of state-owned capital and the continuous upgrading of industries.

Model evolution: From "transplanting big trees" to "cultivating a forest"

As the industrial landscape evolves, Hefei's investment model continues to iterate and upgrade.

In phase 1.0, Hefei's core strategy was "transplanting big trees" — that is, using state-owned capital to lead investments and attract leading enterprises such as BOE and NIO, thereby rapidly laying the foundation for the industry. Entering Phase 2.0, Hefei began "nurturing seedlings and planting forests," extending its investment reach to earlier-stage tech startups — such as Circuit Fabology Microelectronics Equipment and SeeYA Technology—to secure control over the source of technology.

Today, Hefei has entered Phase 3.0, which centers on building a "tropical rainforest"-style innovation ecosystem. Through the "Venture Capital City Initiative," Hefei has widely attracted private institutions to become city-level industrial partners, shifting from the traditional "fundraising, investment, management, and exit" model to supporting enterprise growth throughout their entire lifecycle. The three major state-owned platforms — Hefei Construction Investment, Hefei Industrial Investment, and Xingtai — have formed a closely coordinated "iron triangle": Construction Investment leads investments in leading enterprises, Industrial Investment refines industrial chains, and Xingtai provides comprehensive financial services. This combined approach of "state-owned capital leadership plus market-driven operations" is unleashing a steady stream of innovative vitality.

A sober assessment: Not a myth, but a methodology

Although the "Hefei Model" has achieved tremendous success, it is by no means a myth where "every investment hits the mark."

In fact, Hefei has also experienced hits and misses. Early investments such as the Xinhao Plasma project were ultimately divested due to betting on the wrong technological path, and the Peking University Weiming Biotechnology project also ended in failure. These failures remind us that government industrial investments are equally subject to market risks, technological route risks, and corporate governance risks.

Hefei's success lies in the fact that it did not let setbacks derail its efforts; instead, by establishing scientific decision-making mechanisms and error-tolerance mechanisms, it kept the costs of failure within manageable limits and offset the losses from early-stage exploration with the massive successes of projects like CXMT and BOE.

The IPO of CXMT serves as the most compelling testament to the "Hefei Model". However, this is not the end but a new beginning. In the race for technological innovation and industrial upgrading, there are no permanent winners. For Hefei, the key to advancing from a "venture capital city" to an "industrial highland" will lie in how it transforms paper gains into sustained industrial competitiveness, maintains composure amid industrial cycle fluctuations, and optimizes its investment structure within fiscal constraints.

Hefei's story demonstrates that government industrial investment does not compete with the private sector for profits, but rather represents an innovative investment promotion model that uses capital as a link and industry as its goal. When capital is patient, industries are firmly rooted, and governance is professional, a city can secure a sustainable and proactive future amid global industrial transformation and regional competition.

·Editor's note: Michael Wang is a CGTN biz commentator. This article reflects the author's opinions and not necessarily the views of CGTN.

This summer, historic heatwaves swept across Western Europe. From Barcelona to Berlin, temperature records fell in a matter of days; wildfires spread across the Iberian Peninsula and southern France; and "tropical nights," when temperatures never dropped below 20°C, denied millions adequate relief overnight. Germany recorded temperatures above 41°C, while the United Kingdom issued Red Warnings for extreme heat on three consecutive days for the first time under its current warning system.

They are a warning from a changing climate that does not negotiate with borders, ideologies or levels of wealth. Reducing future emissions is important, but strengthening our capacity to withstand climate impacts already underway is equally urgent. That reality should shape how the world thinks about every credible contribution to mitigation, adaptation and resilience: not as a national possession, but as a shared global asset.

A recent multilingual CGTN online poll points in the same direction. Among 8,035 participants across five language platforms, 92.3% supported sharing climate technologies, disaster-prevention experience and early-warning resources; 88.7% backed climate-technology assistance to developing countries. The poll's message is a practical and clear one: no country can decarbonize or climate-proof the planet alone.

A transition measured in scale

China has developed one of the world's most comprehensive and operationally detailed national green-development strategies, designed not only to cut emissions directly but also to reshape the energy, industrial and ecological systems that determine long-term climate outcomes.

Its 15th Five-Year Plan, spanning 2026 to 2030, and Carbon Peaking Action Plan sit within one of the world's most detailed green-development frameworks, covering carbon governance, clean energy, industry, finance, ecological protection and international cooperation. The targets are concrete: by 2030, carbon dioxide emissions per unit of GDP are to fall 17% from 2025 levels; non-fossil energy is to reach 25% of total energy consumption; and installed wind and solar capacity is to reach at least 2,800 gigawatts.

That wind-and-solar target for 2030 is nearly 46% above the roughly 1,920 gigawatts installed by the end of May 2026. China also aims to double non-fossil energy supply by 2035 compared with 2025 and to raise non-fossil energy above 80% of total consumption by 2060. These goals matter not merely because they are large, but because they seek to weaken the historic link between economic growth and rising fossil-fuel use. Its action plan for carbon peak also calls for additional electricity demand increasingly to be met by additional clean-energy generation.

The importance of this scale extends beyond China. Domestic deployment becomes a global industrial force: it expands supply chains, accelerates technological learning and helps determine which low-carbon solutions become affordable elsewhere.

The strategy also moves beyond wind farms and solar panels. China is developing green hydrogen, ammonia and methanol production bases, along with storage, transport and pipeline infrastructure, to serve heavy industry, shipping and heavy-duty transport. It is also supporting carbon capture, utilization and storage for qualifying thermal-power facilities and carbon-intensive industrial processes. CCUS should not substitute for replacing fossil fuels where cleaner alternatives exist, but it can reduce emissions where substitution remains difficult.

China's green development agenda also looks beyond today's commercial technologies to possibilities at the frontier of energy innovation: controlled nuclear fusion, space-based power stations, high-temperature superconducting transmission and wireless power transfer. These are not yet commercial answers to the climate crisis. Fusion remains scientifically and economically unresolved; space-based solar power and superconducting grids face formidable engineering costs. But their inclusion in a national plan reveals a system thinking not only about the next five years, but about the energy architecture of the second half of the century. If even a fraction becomes viable, its global value will depend not only on who invents it, but on whether the technology can diffuse.

When domestic scale becomes a global asset

China's green transition is already helping make the global transition faster and cheaper than it would otherwise be. Its enormous domestic market, manufacturing capacity, integrated supply chains and intense industrial competition generate economies of scale that have lowered the cost of solar panels, batteries, electric vehicles and other clean technologies. For countries that cannot finance complete green industrial systems from scratch, access to affordable equipment is not merely a trade-policy question. It is a question of energy access, energy security and sustainable development.

Workers and communities tied to legacy sectors, in China and around the world, deserve a just transition that includes retraining, social protection and investment in human capital, enabling them to participate in the industries of the future. Supply chains also need diversification and resilience. But responding to those concerns by making clean technology substantially more expensive through protectionism can become self-defeating. Tariffs and fragmented standards may slow deployment in lower-income countries, where high financing costs already impede projects even when renewables are cheaper over their full lifetime.

Many climate-vulnerable countries contributed little to the accumulated emissions driving today's warming, yet face some of its harshest consequences. Affordable clean technology will not by itself solve their problems; finance, grids, institutions and skilled workers are also essential. But lower-cost solar panels, batteries and electric transport can help countries meet rising energy demand without reproducing every fossil-fuel-intensive stage of earlier industrialization.

Beyond mitigation

Lower-cost mitigation addresses only one half of the challenge. Even under optimistic emissions scenarios, serious climate impacts will persist, although their eventual severity still depends profoundly on how quickly emissions fall. Adaptation is therefore becoming central to national resilience and economic competitiveness. AI data centers and advanced manufacturing require large, reliable electricity supplies; hospitals need uninterrupted power. A grid vulnerable to heat, storms, floods or drought becomes a bottleneck for technological progress itself.

China's related plans combine stronger grids, pumped hydro and long-duration storage with AI-enhanced forecasting and early-warning systems. Sponge-city projects redesign urban landscapes to absorb and manage stormwater, while the South-to-North Water Diversion Project strengthens water security in the country's arid north. These measures were not all created solely as climate policies, but together they reinforce the physical foundations of an economy that can better confront environmental stress.

Physical resilience also requires institutional incentives. Governments are unlikely to protect ecosystems consistently if conventional accounting treats their destruction as growth and their preservation as economically invisible. China has therefore pioneered and progressively institutionalized Gross Ecosystem Product, or GEP, which measures services such as carbon sequestration, water purification and flood regulation. A national trial accounting specification was issued in 2022, and a growing number of localities use GEP in planning and performance evaluation. GEP does not replace GDP, and measurement alone cannot guarantee conservation. But what societies measure shapes what governments protect and invest in.

Competition without exclusion

Competition and cooperation need not be opposites. Nations will, and should, compete to lead in the green technologies that will power a clean energy future. But climate progress is not inherently zero-sum. Clean-energy deployment in one country can expand production, accelerate learning and lower costs for others.

The task is to draw a more intelligent boundary between strategic competition and shared necessity. Clean-energy supply chains should be made more resilient through diversification, greater capacity and interoperable standards, not by excluding major producers or denying countries affordable solutions. Mutual recognition of carbon-accounting and product-verification systems, collaborative research on storage and hydrogen, and lower friction for verified low-carbon goods could create a more integrated market that rewards decarbonization wherever it occurs.

Three principles follow. First, prioritize access over exclusion. Second, invest in adaptation with the same urgency as mitigation. Third, place the needs of the most vulnerable at the center of climate policy. The European heatwaves of 2026 will not be the last. In the face of shared but unequal risks, every credible contribution to mitigation and resilience, wherever it originates, should be treated more as an opportunity for practical cooperation rather than another arena for geopolitical division.

The world already possesses many of the technologies and much of the capital required. What it lacks is a system capable of directing them quickly and affordably to the places where they can make the greatest difference. Green innovation derives much of its value not from being hoarded, but from being deployed widely and rapidly.

No artist. No brush. Just nature.

The only problem? You'll want to take this panda home.

In this traditional Chinese birthday custom, symbolic objects hint at future interests. Wangshu, nicknamed Little Moon, picked a bamboo football first! 

AI, robotics, and innovative medicines are emerging as China's new "new three" export drivers. CGTN's He Jingyi explores how these sectors are addressing global challenges, ranging from slowing productivity growth and aging populations to growing healthcare demands, while becoming a new engine for future economic growth.

Brazil on Wednesday denounced the United States for using what it called "baseless and false" claims to extend its emergency trade powers against the South American country for another year, a move aimed at justifying the continued imposition of punitive tariffs on Brazilian exports.

In a statement, the Brazilian government condemned the US decision, criticizing the repeated use of "baseless and false arguments" alleging that Brazil poses an "unusual and extraordinary threat to US national security, foreign policy and the economy."

Designating Brazil as a threat requiring emergency economic measures has allowed Washington to impose tariffs of up to 35% on a range of Brazilian industrial goods as part of the tariff policy launched by US President Donald Trump in 2025.

According to Washington, the emergency measures are necessary due to alleged human rights violations, the suppression of free speech for US individuals and companies, and the political persecution of former President Jair Bolsonaro. Bolsonaro was recently found guilty of attempting a coup after losing his reelection bid.

Categorically rejecting these accusations, Brazil said the allegations had already been thoroughly refuted in multiple bilateral meetings.

The statement further emphasized that "it is entirely inappropriate to characterize Brazil as a threat to the United States, especially in light of the historic diplomatic ties and friendship that unite both peoples."

Brazilian cocoa producers are expanding efforts to supply China’s growing appetite for premium chocolate while preparing for the risks posed by a developing El Niño weather pattern.

Farmers in Bahia continue adapting to the long-term effects of witches’ broom fungus through improved crop varieties, while researchers are developing drought-resistant cocoa plants to strengthen future harvests.

Producers are also focusing on higher-quality specialty cocoa to compete internationally rather than on production volume. Industry leaders see China as a promising export destination for premium chocolate despite ongoing climate challenges that threaten cocoa production. CGTN’s Paulo Cabral reports from Ilhéus, Brazil.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

Toyota will gradually shift production from its Tijuana, Mexico, factory to a new plant in Texas by 2030, following uncertainty surrounding the future of the U.S.-Mexico-Canada Agreement.

Mexican officials say they are working with the automaker to minimize the impact on workers, while the company says the move is part of a broader global business review.

Analysts note Toyota will continue manufacturing in Mexico through its Guanajuato facility, and investment continues to flow into Tijuana’s electronics sector despite the changes. CGTN’s Alasdair Baverstock reports from Mexico City.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

AI is one of China's new "New Three" exports, and its leading the race with more efficient, cheaper, and open source models. Its not just that US companies are switching to Chinese AI, but it's also the case that the rest of the world is heading in that direction as well.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

The US Federal Reserve on Wednesday kept the target range for the federal funds rate unchanged at 3.5% to 3.75%, as widely expected by the market.

The move marks the Fed's fifth monetary policy meeting in a row with a wait-and-see stance, while expectations for an interest rate hike have been building for the coming months.

The year-on-year growth rate of the US headline consumer price index dropped to 3.5% in June from 4.2% in May as oil prices plunged in the period.

Still, the United States continues to face elevated inflationary pressures in comparison with the Fed's 2% inflation target.

"Inflation remains elevated relative to the Committee's 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," the Federal Open Market Committee said in a press release. "Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East."

While nine members of the Federal Open Market Committee voted to keep rates steady, three policymakers from Dallas, Cleveland and Minneapolis dissented, arguing in favor of a 25-basis-point interest rate hike. It marked the first time since 2016 that a Fed policy decision had drawn three dissents in the same direction.

The vote split highlighted a growing internal divide over whether the central bank is moving too slowly to curb inflation. Prior to the meeting, several Fed officials, including Fed Governor Christopher Waller, had made statements supportive of tighter monetary policy should inflation persist.

The July meeting was the second presided over by Federal Reserve Chair Kevin Warsh. Since taking the helm, he has repeatedly emphasized a hardline stance on prices, stating in a recent congressional hearing that the committee has "no tolerance for persistently elevated inflation."

"I understand the desire for rolling forecasts and commentary from this committee, but for our part, we need to observe market reaction to developments direct and unfiltered," Warsh said at the post-decision press conference. "I want to stress, of course, that decisions by this committee matter a great deal, and where necessary and appropriate, we will not hesitate to act."

Warsh also described July's rate decision as "a rigorous review of the economic situation" and not "as anything like a pause."

The Fed chair has repeatedly said he wants to avoid giving markets information about the path of monetary policy, so that markets react to economic fundamentals rather than Fed chatter. He said the Fed can take clearer signals from the market as a source of information about the economy. "We're trying to make sure that source of information is as direct and unfiltered as possible," Warsh said.

Interest rate traders broadly agree that the Fed will raise rates at least once before the end of the year. According to CME FedWatch, Fed funds futures contracts indicate a 90% probability that rates will be at least a quarter-point higher by January 2027.

US stocks tumbled on Wednesday following the Fed decision. The Dow Jones Industrial Average fell 2.19% to 51,594.14. The S&P 500 sank 1.52% to 7,316.15. The Nasdaq Composite Index shed 1.74% to 24,442.94.

"The Fed appears to be running out of patience with above-target inflation, despite recent data coming in cold," said Kay Haigh, global head and CIO of fixed income and liquidity solutions at Goldman Sachs Asset Management. "The committee's growing hawkish sentiment, shown by the three dissents against today's hold, has also likely been exacerbated by the recent flare up in hostilities in the Middle East."

China's export game just leveled up. Where the country used to focus on EVs, batteries and solar panels, it's now growing to fill global demand for AI, robots, and medicine.

Chinese AI models have been the most-used on the planet for 12 straight weeks. Surgical robots are now in 49 countries, up from 23. And global pharma just paid $110B in six months for Chinese drug licenses. China's not only exporting products anymore; they're exporting ideas.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

Chinese open-source AI is expanding rapidly worldwide. Lower costs, data sovereignty, and open ecosystems are reshaping AI.

The total import and export value of Yiwu City, known as the "world's supermarket", in east China's Zhejiang Province, reached 486.42 billion yuan (about $71.64 billion) in the first half of 2026, up 19.9% year on year, according to customs statistics.

Its exports hit a record high of 420.72 billion yuan from January to June, up 17.3%, while imports surged 39.1% to 65.7 billion yuan.

Since the beginning of this year, local market vendors have capitalized on global sporting events such as the 2026 FIFA World Cup, driving a sustained increase in exports of sports goods. In the first half of 2026, Yiwu exported 6.22 billion yuan of sports goods, of which 1.25 billion yuan went to Latin America, an increase of 20.4% year on year.

Yiwu Customs has pioneered a new model that enables parallel inspection and container loading at supervised warehouses. The reform has not only resolved key bottlenecks but also boosted export efficiency by 30%.

While consolidating traditional markets, Yiwu's foreign trade network continues to expand. In the first half, the city engaged in import and export trade with 230 countries and regions, an increase of four compared with the same period last year.

On the import side, Yiwu is buying more from around the world. Imports of consumer goods reached 31 billion yuan in the first half of 2026, up 19.5% year on year. Among them, aquatic product imports amounted to 5.02 billion yuan, up 58.3%. During the same period, imports of mechanical and electrical products grew 65.1% to 4.12 billion yuan.

A wave of share buybacks, stake increases and fresh investment commitments from China's state-owned enterprises (SOEs) and major financial institutions is sending a clear message: confidence in Chinese assets is strengthening as the second half of 2026 begins.

Over the weekend, a broad range of central SOEs announced plans to increase holdings or repurchase shares, spanning sectors from aluminum, energy and coal to rail equipment. At the same time, leading insurers, including Ping An Insurance, PICC, CPIC and New China Life, pledged to expand equity allocations, with a particular focus on technology, advanced manufacturing, new infrastructure and other strategic industries. State capital operators, including China Reform Holdings Corporation and China Chengtong Holdings, also reaffirmed their commitment to deploying hundreds of billions of yuan to support the market through share purchases and ETFs.

The coordinated moves go beyond near-term market stabilization. Long-term capital is increasingly positioning itself around sectors aligned with China's industrial upgrading and innovation agenda, rather than pursuing short-lived market momentum.

That domestic confidence is beginning to find international echoes. Citigroup has upgraded Chinese equities to "overweight" from "neutral" within its emerging market allocation, citing improving global growth prospects, a more supportive liquidity backdrop and stronger earnings potential. The bank expects Chinese companies to rank among the leading contributors to earnings growth across emerging markets in 2026.

Citi Group upgraded its rating on Chinese equities in emerging market allocations to overweight from tactical neutral in its emerging market asset allocation on Monday, signaling a positive outlook for Chinese assets in the second half of the year.

Chinese equities stand to benefit from the global stock market rally and improving growth environment, according to Citi analysts in its latest research report. The report noted structural changes in emerging market opportunities, with further upside possible if geopolitical risks ease, liquidity improves and the macro environment stays favorable.

Citi projected significant earnings growth for MSCI Emerging Markets Index constituents this year, with Chinese and South Korean companies leading in earnings improvement potential. The upgrade comes as AI- and chip-driven rallies in the US and South Korean markets since April have recently seen notable pullbacks.

(Cover via VCG)

The United States is imposing a tariff of 50% on a wide range of Canadian products in response to what it called Canada's "discriminatory treatment" of US cars, alcohol and dairy, ​according to the White House.

US President Donald Trump signed three proclamations to impose the tariffs ​under a nearly century-old trade law, Section 338 of the Tariff Act of ⁠1930, which allows for tariffs of up to 50% on imports from specific countries.

The ​products covered by the tariffs range from wine to hockey sticks to cement, according to a White ​House fact sheet. The new tariffs would also apply to a variety of other items including dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs.

"While the administration continues to secure fair and reciprocal trade deals with our ​trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for ​its efforts to rebalance trade and protect US industry in national-security sensitive sectors," US Trade Representative Jamieson Greer said in ‌a ⁠statement.

The office of Canadian Prime Minister Mark Carney did not immediately respond to a request for comment.

The announcement comes just days after Trump blamed Canada for wildfire smoke spreading across the United States and threatened to add the "incalculable cost" of dealing with the pollution to existing tariffs on Canadian goods.

​The tariffs announced on ​Monday take effect on ⁠August 19 and apply regardless of whether goods qualify under the US-Mexico-Canada Agreement, though energy, potash, fish, critical minerals and products already covered by Section ​232 tariffs are exempt.

The White House cited Canada's "protectionist" dairy system as ​well as ⁠tariffs and quotas on cars imported to Canada from the US but not from other countries as among the reasons for the tariffs. It also cited the fact that most Canadian provinces have halted the ⁠sale of ​US alcohol, which they did in response to previous ​US tariffs.

The White House said Canadian imports of US motor vehicles dropped by 22% and imports of US alcoholic beverages ​declined by 81% over the past year.

On July 17, a freight train bound for Poland departed from Alataw Pass in Xinjiang Uygur Autonomous Region, marking the 10,000th China-Europe Railway Express service to transit through the twin ports of Alataw and Khorgos in Xinjiang in 2026.

"Smart customs" and 24/7 border services have reduced clearance for exported goods to one hour (down from six) and for imported goods to under 16 hours (from two-three days), while border checks are reduced to under 20 minutes. Over 50 trains –  carrying over 200 types of goods – run daily across more than 220 routes to 21 countries and regions.

Shanghai released its economic performance data for the first half of 2026 on Monday, showing that the city's consumer market continued to expand and remained firmly among China's leading "trillion-yuan" consumer cities.

In the first six months of the year, Shanghai's total retail sales of consumer goods reached 831.97 billion yuan ($122.4 billion), up 0.7% year on year. 

Beyond the headline figure, the data also pointed to a broader transformation of the city's consumption landscape as services and emerging forms of consumption became increasingly important drivers of growth.

Shen Weihua, director of the Shanghai Municipal Commission of Commerce, said that Shanghai is developing a cross-sector mechanism to connect different consumption scenarios. Under the initiative, tickets and admission passes for performances, sporting events, museums and exhibitions will be linked with shopping centers and businesses.

Shen said this will allow visitors to enjoy exclusive discounts and benefits at nearby shops and restaurants while attending cultural and sporting events.

Shanghai's cultural tourism

The 2026 Shanghai Summer International Consumption Season has attracted hundreds of locals and visitors to explore the city's iconic waterways.

At the Shanghai History Museum, a major exhibition traces the transformation of Suzhou Creek over more than 1,000 years. Through archaeological artifacts, historical documents, multimedia installations and interactive digital displays, the exhibition reveals how the river helped shape Shanghai's transport networks, commercial development and urban landscape.

Suzhou Creek, historically known as the Wusong River, originates in Taihu Lake and is often described as one of Shanghai's mother rivers. Long before the rise of the modern metropolis, it served as an important channel linking communities, goods and cultures across the Yangtze River Delta.

Summer consumption trends

Meanwhile, the summer consumption season is bringing cultural experiences beyond museums to the waterfront, with hundreds of activities ranging from themed cruises and art exhibitions to concerts, light shows, gaming events, waterfront sports and community programs.

Organizers said the festival is designed to connect historical heritage with contemporary urban life, while bringing museums, universities, businesses and communities together to develop new cultural tourism experiences.

Shanghai Summer International Consumption Season will run from July to October under the theme "Shanghai Summer, Join the Family Fun."

Major events during the season include the Rolex Shanghai Masters, the FIM Motocross World Championship Shanghai, the Shanghai International Light Festival, the Music in the Summer Air festival and a Shanghai Museum exhibition on the ancient civilizations of the Americas.

For international visitors, the city is also offering services, including the Shanghai Gourmet Passport and the Shanghai Pass prepaid card.

As new cross-sector business models continue to emerge, Shanghai is breaking down traditional consumption boundaries and reshaping the city's commercial landscape.

The "iPhone moment" for AI glasses has not yet arrived, and the industry still needs three to five years to overcome key bottlenecks in hardware, chips, displays and ecosystem, said Rokid Co-Founder Cai Guoxiang during the 2026 World Artificial Intelligence Conference.

Editor's note: Ankit Prasad is a biz commentator. The article reflects the author's views and not necessarily those of CGTN.

The greatest show on Earth concluded in dramatic fashion on Sunday in New Jersey with Spain emerging world champions against Argentina, but several time zones ahead, the watch party in China went on all night. In what has been the biggest World Cup by many metrics, most notably in terms of structure with its 48 teams, and with FIFA projecting tournament revenues in excess of $9 billion, one of the most astounding stats was to be found on the CMG live stream that this author was hooked on to for a majority of the 104 matches.

At the climax of the FIFA World Cup Final, the concurrent viewers counter read an incredible 90 million, with the comments-box moving so fast it was impossible to read. And that was just one of the many streams on offer, for a match that kicked off at 3 a.m. in Beijing time. The 2022 World Cup in Qatar had witnessed China account for almost half (49.8%) of all hours of viewing on digital and social platforms globally, as per FIFA. While this edition's numbers will be collated, evidence suggests Chinese football fans have put in their best effort to keep that record intact -- vouched for by the bleary eyes in offices and surge in football-related consumption on-ground and in the data. The interest is abundant, and this is despite factors being far from ideal.

Consumption levels up as China watches World Cup 2026

The last 6 weeks have flown by in a World Cup frenzy. As often happens when the showpiece event comes around every four years, it's not only the football devout who are watching. The World Cup transcends all manner of boundaries, the most obvious of which is nationality. There often is no real logic behind whom a fan decides to support. Ask any random group who they're cheering for and you're likely to get as many answers as there are people.

In the lead-up to the World Cup I had noticed pop-up stores selling merchandise of various teams crop up at heavy-footfall pedestrian centers. The interiors of some of Beijing's subway trains were also branded for the World Cup, with the cab floor painted to resemble a football pitch and larger-than-life cut-outs of some of the competing superstars emblazoned on the walls.

It's not even limited to watching. Clearly unsatisfied at just being spectators, many people took to the field to emulate their heroes. For the last month, this author has spent every Saturday evening at a futsal turf near the Temple of Heaven in Beijing. My teammates and opponents have been an assorted bunch of people of all ages and professions: a young lawyer who is a dashing winger, a middle-aged advertising executive with an eye for goal, a silver-haired businessman with a very accurate heading ability. There are often 18 people who join in to play on a pitch that is meant for 6 vs 6, so creative tournament formats have to be applied to ensure everyone gets enough game-time. And you have to confirm your presence for a Saturday session as early as Tuesday because there's a rush to book the court.

Beyond hobbyists, high-profile regional amateur leagues also took the spotlight. The Northeast Super League created a carnival atmosphere and was a superhit with the fans. Match tickets were also clubbed with entry to historic attractions and retail offers. A person going to watch a match in Shenyang could add a visit to Marshal Zhang's Mansion and the Shenyang Imperial Palace for no extra cost, making it a more rounded and leisurely tourist weekend.

Restaurants, pubs and theaters across the country also pulled out all the stops. Many had offers on food and drink, for fans to come over in the middle of the night to watch their teams on the big screen and have a great time, win or lose. For the final itself, for those who preferred to go out rather than the ubiquitous house-party barbecue with friends, several establishments advertised creative "free-flow" and extended happy-hour deals. Take a walk around town at any time, and a screen with either a live match or highlights would never be far.

Chinese tech & production delivers at World Cup 2026

Importantly, this time, the World Cup even transcended the realm of sports in a sense. If Qatar 2022 was the winter tournament of influencers, North America 2026 has been the tournament of technology. VAR has played a role in most matches, now aided by several sensor-based systems. 

Aileen Zhang, a senior executive at Lenovo, told CGTN in great detail during a live-stream how the Chinese company had implemented the automatic offside detection system. This included not just setting up the relevant infrastructure at all tournament venues, but also making millimeter-accurate avatars of each player at the World Cup. 1,263 players were photographed from 36 different angles in a herculean task which Aileen and her team clearly relished.

In general, from branding and sponsorship to specific partnerships and technology, Chinese firms were deeply embedded in the 2026 FIFA World Cup. Life-sized Labubu figures became the first Chinese IP to debut at a World Cup at the opening match, going viral on social media. Hisense screens were used by the match referees pitchside to consult the VAR. As per reports, Chinese firms contributed as much as 20% of FIFA's sponsorship income for World Cup 2026.

Outside the stadia, Chinese technology also played a role in enriching the fan experience during their commutes to-and-fro matches. Chinese-made EV buses as well as an urban light rail system provided safe and comfortable travel for local fans as well as visitors from around the world in Mexico's venues. 

And then there's the merchandise. Yiwu, the epicenter of football merchandise, pulled out all the stops for this edition. There was a 39% year-on-year increase in exports of sporting goods and equipment during the first two months of this year. If you purchased a football scarf, toy, wristband, jersey or any other licensed gear, there is a good chance it originated in Yiwu.

What this tells us: We've just scratched the surface

From the experience of the 39-day tournament, it becomes clear once again that the intersection of the World Cup and China's economy makes for very interesting analysis. There is overwhelming interest in absolute terms across different areas, which may shift up or down based on multiple factors. But it appears to be sticky and has critical mass. The elephant in the room, therefore, is -- what if all the factors were positive and the stars aligned? What if viewers not just in China but also elsewhere had even more reason to watch, engage, and consume when the World Cup comes around?

FIFA has made the right noises by suggesting the World Cup could be further expanded in coming editions. The jump from 32 to 48 teams was a success, with many World Cup debutants giving a good account of themselves and even achieving the odd memorable result. If anything, there is a sporting reason to go further, as the group stage of the 2026 edition had the lowest stakes and the least jeopardy in history, and that is a format issue that must be sorted.

The fact that FIFA is more openly and creatively embracing both inclusivity as well as football's commercial potential, via various reforms both on and off the pitch, underscores the need to continue to view the World Cup as a work-in-progress. Tournament participation and fan interest are a virtuous circle. To put it simply, four of the five most populous nations in the world didn't have teams playing in the 2026 World Cup, and yet, they may offer diehard fan bases with exciting potential. The question every football fan, sports administrator and economist must ask together is:

What if they do participate? 

...and then they must work out a solution.

A new robotic hand from 1X Technologies, a Norwegian humanoid robot company, claims to have approached human-level dexterity, with fully actuated fingers, palm and thumb. It can assemble LEGO, change light bulbs and pour tea with a level of fluidity that is almost human.

China's homegrown AI innovations, such as optoelectronic computing, will help build an open global AI ecosystem across both domestic and international dimensions, said Zou Tianqi, CEO of MakeSens, in an interview with CGTN reporter He Jingyi at WAIC 2026.

Robots showcased impressive skills at WAIC 2026. Beyond basic running and jumping, robots played ping-pong, quadruped robots pulled off stunning 720° backflips, and some other robots performed delicate daily household chores.

The Thailand-China (Sichuan) Investment and Economic Forum was held in Sichuan, southwest China, on July 18, bringing together government officials and business leaders from both countries. The event highlighted expanding cooperation in investment, artificial intelligence and technology. It featured the inauguration of the Thailand Board of Investment's Chengdu Office, marking a new milestone in China-Thailand economic cooperation.

AI machines are replacing grueling manual labor during cotton topping season. Using 3D cameras & 108 robotic arms, the robot can work at a high temperature of 38°C, covering up to 600 acres of land daily. (Shang Jianglong contributed to this story.)

Editor's note: Warwick Powell is an adjunct professor at Queensland University of Technology. This article reflects the author's opinion not necessarily those of CGTN's.

In an era of relentless information warfare and competing global narratives, one might expect the side with the slickest messaging to dominate. Yet recent evidence suggests otherwise. A June 2026 Pew Research Center survey across 36 countries reveals a notable shift: In 25 nations, more respondents held favorable views of China than of the United States — the first time Pew has recorded this outcome in roughly two decades of tracking. China's favorability reached a median of around 46%, while the US sat at 36%. This reversal is particularly pronounced in middle-income and Global South countries.

This outcome challenges assumptions about the supremacy of creative propaganda. China is not renowned for flashy public diplomacy. Its official communications often carry a staid, bureaucratic tone — repetitive emphasis on "win-win cooperation,""mutual respect," and a "community of shared future." Compared to the sharp, adaptive, culturally attuned narratives emanating from Western capitals, it may appear lumbering and dull. Yet this "steady as she goes" posture, paired with a deliberate "let actions speak" philosophy, is delivering measurable results where it arguably matters most: among nations charting their development paths in a multipolar world.

Actions as the ultimate messenger

At the heart of China's model is a consistent focus on tangible delivery over rhetorical flourish. For years, the country has prioritized large-scale infrastructure, trade expansion, and investment — often under the umbrella of the Belt and Road Initiative and complementary bilateral arrangements. Ports upgraded, railways constructed, power plants commissioned, and industrial corridors developed — these are not abstract pledges but concrete realities visible on the ground. Impacted communities experience expanded connectivity, job creation, and market access. Governments see sovereign-friendly partnerships that emphasize non-interference and mutual economic benefit.

This approach aligns rhetoric with reality. China's messaging, though metronomic and sometimes cumbersome, simply frames what the deeds already demonstrate: Patient, scalable engagement aimed at shared growth. There is little hyperbole to undermine credibility when projects materialize. In regions hungry for infrastructure and reliable trading partners, such consistency builds trust through repetition and results rather than spectacle.

Pew's 2026 data underscores this effectiveness. Positive appraisals of China are strongest in Latin America, parts of Africa, Southeast Asia, and other middle-income settings. Here, respondents often view China as contributing more reliably to economic opportunities. By contrast, views remain cooler in high-income countries and among certain neighbors with acute security sensitivities — Japan recording some of the lowest favorability toward China, for instance. These variances reflect differing national contexts: Development priorities in the Global South versus security alliances and values-based concerns in parts of the Global North. Historical colonial legacies also play a role. Nations with lived experience of external interference or extractive relationships often respond more favorably to a partner that foregrounds sovereignty and practical cooperation.

China's success is not that it excels at propaganda. In many respects, it does not — especially when juxtaposed against sophisticated Western media ecosystems, Hollywood soft power, and agile digital diplomacy. Western narratives frequently frame issues with moral clarity, emotional resonance, and creative sharpness. They adapt quickly to events. China's style could be said to be somewhat more wooden, state-coordinated, and focused on long-term continuity. Yet in the court of public opinion across much of the developing world, substance is trumping style. Deeds on the ground — visible, measurable improvements — cut through the noise of competing stories.

Context, colonial legacies, and differential appeal

The Global South/Global North divide in attitudes is illuminating. In sub-Saharan Africa, parts of Latin America, and Southeast Asia, China's economic footprint has translated into warmer perceptions. Trade volumes have surged, positioning China as a top partner for many. Investments address genuine gaps in physical capital that faster-talking alternatives have sometimes left unaddressed. Publics in these regions appear to weigh delivered infrastructure and trade opportunities heavily.

Former colonial powers and wealthy Western nations, by comparison, tend to maintain more guarded or adverse views. This partly reflects differences in priorities — strategic competition, governance standards, and territorial disputes loom larger where security is assured and economies are advanced. Historical memory of great-power competition also shapes skepticism. China's steady, non-preachy posture resonates differently depending on a country's position in the global hierarchy and its past encounters with external powers.

This contextual effectiveness reveals something else at work too. And that is that influence accrues not from universal narrative dominance but from alignment with local realities and needs. China's model — predictable, long-horizon, and delivery-focused — optimizes for breadth of relationships in the developing world, where population growth and economic momentum are concentrated.

The limits of information campaigns alone

Notably, substantial resources have been directed toward counter-narratives targeted at China. The US Congress has authorized significant funding for initiatives aimed at highlighting concerns about China through information campaigns, broadcasting, and public diplomacy efforts. Yet the Pew results suggest such spending has not reversed the broader trend in many key countries. Actions and consistency appear more persuasive than amplified critique when realities on the ground diverge from the messaging.

Hyperbole, however eloquent, struggles when daily experience tells a different story. Erratic shifts in policy emphasis or over-reliance on dramatic framing can erode credibility over time. China's "boring" steadiness avoids this trap. By keeping expectations measured and focusing on executable projects, it allows partners to judge outcomes for themselves. Impacted peoples and nations readily distinguish between compelling talk and consistent delivery.

Reality trumps hyperbole in the long run.

A model for patient power

China's approach does not seek to win every audience or convert every skeptic. It does not need to. By doubling down on what it does best —sustained economic engagement, infrastructure scale, and rhetorical continuity — it is steadily expanding its circle of pragmatic partners. This is civilizational patience in practice; it is a recognition that enduring influence grows from compounding results rather than daily narrative victories.

Western observers often critique the wooden quality of Chinese communications. There is a certain truth to that assessment though we are witnessing the emergence of some edgier communications from an emergent cohort of younger journalists and influencers. Yet the 2026 global attitudes data invite a humbling reflection: Effectiveness does not always require virtuosity in advertising. Sometimes, showing up consistently, delivering on commitments, and letting the ports, rails, and trade statistics speak proves more compelling in the long run.

As the international landscape evolves toward greater multipolarity, this "steady as she goes" philosophy merits closer study. It may not dazzle, but it accumulates. In a world weary of grand promises and shifting storylines, tangible progress delivered without fanfare holds distinctive appeal — particularly for those nations focused on building their own futures on their own terms. China's growing reception in key regions demonstrates that actions, sustained over time, can indeed speak louder than even the most sophisticated words.

Imagine a robot without a brain. It probably only knows how to move, but can't handle barriers. The so-called AI world model can make all the difference. It offers a brain to robots that lets AI know the physical world and lets it think. CGTN reporter Chen Tong explains the importance of the world model.

WAIC 2026 is underway in Shanghai from July 17 to 20. AI is powering investment, industrial upgrading and new quality productive forces in China. 

Swipe through the infographics to explore the country's AI boom.

Reliable power supply, robust grid infrastructure, fast project execution and a business-friendly environment give China a unique advantage in scaling artificial intelligence (AI), Robin Xing, chief China economist at Morgan Stanley, tells CGTN. As open-source models spread, AI is increasingly being translated into real productivity across industries. 

Services are now leading China's consumption growth, according to Liu Chunsheng, associate professor of Central University of Finance and Economics. He says rising demand for experiences, alongside strong spending on digital products, reflects a broader shift toward higher-quality consumption and new sources of economic growth.

How did China's economy perform in the first half of 2026? What opportunities and challenges lie ahead in achieving this year's growth target?

In this episode of BizTalk, CGTN's Lily Lyu sits down with experts from Morgan Stanley, China International Capital Corporation and the Central University of Finance and Economics to break down China’s latest economic data, explore the outlook for the economy, emerging trends and policy priorities in the second half of the year.

Editor's note: Lin G. is a CGTN economic commentator. The views expressed in this article are the author's own and do not necessarily reflect those of CGTN.

At the World Artificial Intelligence Conference (WAIC) in Shanghai, 29 countries signed the agreement establishing the World Artificial Intelligence Cooperation Organization (WAICO), with its headquarters permanently based in the city. United Nations Secretary-General António Guterres attended the signing ceremony. By any measure, this marks a milestone in global AI governance. 

Yet even as countries gathered to expand cooperation in the AI era, some Western media outlets chose to view the development through a different lens — framing a new platform for global participation as another geopolitical contest.

A familiar pattern, an outdated lens

A pattern has become predictable. When a multilateral initiative emerges that is not led by the United States or its traditional allies, it is promptly labeled a geopolitical instrument. Several Western media outlets and policy circles, including voices from publications such as The Economist, Reuters, and the Financial Times, have tended to frame China's engagement in AI through the language of "AI diplomacy" or strategic competition. Similar interpretations have also appeared in some US think tank discussions, where AI cooperation is often viewed primarily through the prism of great-power rivalry.

This perspective rests on a binary assumption: international cooperation is either American-led or it is a challenge to American influence. The possibility that developing countries may have their own priorities, their own interests, and their own agency does not easily fit into this narrative.

But the real divide in global AI governance is not between Washington and Beijing. It is between those who treat artificial intelligence as a commodity to be monopolized — a "new oil" — and those who see AI as a global public good whose value lies in circulation and access. AI, in this vision, is more like water than oil: its value comes not from scarcity and control, but from wider use and shared benefits.

What the Global South actually wants

The most powerful rebuttal to geopolitical readings can be found on the stage of WAIC itself. The opening ceremony featured keynote addresses by United Nations Secretary-General António Guterres and leaders from Kazakhstan, Cambodia and Thailand.

Their collective voice lays bare what developing nations genuinely pursue in AI governance, far removed from Western narratives focused on power competition. The speeches underscored a shared vision: that the future of AI should be shaped through broader international participation, with developing countries able to access the opportunities created by technological progress rather than being left behind.

For the Global South, AI governance is ultimately not about geopolitical rivalry, but about ensuring that innovation becomes a driver of development and that the benefits of the intelligent era are shared more widely. After years of facing extraterritorial measures imposed by the United States, many developing countries have little interest in turning AI into another arena of bloc confrontation. Their priority is to preserve space for development, strengthen technological capacity, and participate in a global system where rules are shaped through consultation rather than imposed by a few.

With the United Nations playing a central role and WAICO established as a platform for international cooperation, the hope is that AI governance can move toward a truly global framework — one that serves all nations rather than becoming another instrument of geopolitical rivalry.

Four principles, one logic

The four principles articulated at the conference offer a coherent philosophy of AI governance:

First, openness and win-win cooperation, encouraging open-source development, openness and collaboration. Second, ensuring that AI is secure and controllable, while opposing the overstretching of the "national security" concept or placing one country's security over that of others. Third, promoting mutual learning among civilizations. AI should not undermine the diversity of world civilizations. Fourth, advocating solidarity and improving global governance. The important role of the United Nations should be recognized.

These principles are also being translated into concrete action. China announced that it would provide 5,000 AI training opportunities for developing countries over the next five years, establish international AI application cooperation centers for ASEAN, the Arab League, the African Union, CELAC, the SCO and BRICS members, and promote the deployment of AI-powered weather early-warning solutions in 30 countries and regions.

Seeing the world as it is, not as you fear it to be

The geopolitical narratives surrounding WAICO reveal more about the mindset of some Western commentators than about the organization itself. A global governance mechanism that brings together countries from different regions, including many developing nations, and receives recognition from the UN Secretary-General should not be reduced to a geopolitical narrative. It represents an effort by countries that have long had limited influence in global technology governance to claim a greater voice in shaping the future of AI.

The question for those who view AI cooperation primarily through the lens of rivalry is simple: Can they recognize what the Global South is asking for, or are they projecting geopolitical anxieties onto a shared effort to build a more inclusive AI future?

Walk into shopping malls and cultural venues across China this summer, and you will spot a striking shift in how people spend money. Instead of simply buying clothes, snacks or daily goods, young consumers are flocking to immersive IP experiences, interactive cultural carnivals and scene-based entertainment.

This small but vivid lifestyle shift is the most intuitive symbol of China's ongoing consumption upgrade. It also sets the tone for the country's solid economic performance in the first half of 2026.

According to official data, China's GDP reached 69.57 trillion yuan (around $10.28 trillion) in H1, growing 4.7% year on year. Notably, retail sales of goods increased by 1.1%, while service retail sales grew by 5.3%, signaling a deeper shift in China's consumption landscape, as buyers move from fulfilling basic needs to pursuing emotional resonance and a more meaningful life.

China's robotics sector demonstrated notable export growth in the first half of 2026, driven by continuous technical iteration and competitive pricing in international markets.

Data from the General Administration of Customs shows that industrial robot exports reached 6.29 billion yuan ($930 million) in the first half of the year, representing an 18.6% year-on-year increase, with products shipped to 141 countries and regions. The growth is based on the 2025 shift when China became a net exporter of industrial robots for the first time, with exports outpacing imports.

A key trend driving this momentum is that Chinese firms are shifting from exporting standalone hardware to offering integrated automation solutions.

Over decades of domestic deployment, Chinese robotic systems have been integrated into over 70 major industrial sectors, building a deep operational database.

"Going global is no longer just about selling equipment; the core is exporting matching automation services," Zhang Peng, vice-president of Guangdong Topstar Technology Co. told CMG. Zhang said that overseas revenue now constitutes 20 to 30% of the company's total.

According to Bi Yalei, secretary-general of the Shenzhen Robotics Association, the global drive toward manufacturing automation has increased international demand for Chinese products, while advancements in artificial intelligence and embodied intelligence are unlocking new application scenarios.

The export surge has also extended to advanced medical and consumer robotics.

Surgical robotics exports grew over three-fold, reaching 480 million yuan in the first half of the year. Combined exports of domestic cleaning robots and bionic robotics totaled 18.09 billion yuan.

As global manufacturers seek to upgrade their production lines, China's robotics industry is positioning itself as a key supplier of both specialized industrial machinery and consumer-oriented bionic systems.

China's gross domestic product (GDP) grew 4.7% year on year in the first half of 2026, data from the National Bureau of Statistics (NBS) showed Wednesday.

"National economy operated within an appropriate range with new growth drivers developing rapidly in the first half year," said Mao Shengyong, NBS deputy head.

New growth drivers, represented by high-end manufacturing, the digital economy and modern services, contributed over 40% to China's economic growth in the first half year.

Though global trade growth cooled, China's foreign trade posted strong resilience, with its total foreign trade in goods up 16.9% year on year.

China's gross domestic product (GDP) grew 4.7% year on year in the first half of 2026, reaching 69.57 trillion yuan ($10.28 trillion), data from the National Bureau of Statistics showed on Wednesday.

The country's key economic indicators have shown solid performance, with new growth drivers expanding quickly, signaling sustained resilience of the economy.

In the first six months of 2026, the value-added industrial output of China's industrial enterprises above designated size, enterprises with annual revenue of at least 20 million yuan, grew by 5.4%. Notably, the value-added industrial output of equipment manufacturing and high-tech manufacturing climbed 9.3% and 13.3%, respectively.

Retail sales of goods and services, a key gauge of the country's consumption strength, expanded 2.7% year on year. Total retail sales of consumer goods came in at 24.87 trillion yuan during the January-June period. Meanwhile, the service sector also expanded, with output increasing 5.2%.

China's foreign trade saw robust growth during this period, with imports and exports totaling 25.47 trillion yuan, a 16.9% year-on-year growth.

Fixed-asset investment, excluding rural households, went down 5.7% year on year to reach 22.64 trillion yuan.

Overall, China's economic performance remained within a reasonable range in the first half of this year, with new quality productive forces continuing to gain momentum, according to Mao Shengyong, deputy head of the NBS. However, with growing external uncertainties and imbalances between domestic supply and demand, the foundation for sustained economic recovery still needs to be consolidated, Mao added.

The main strengths of China's economy in the first half of the year were the recovery in consumption, rising rural incomes and the resilience of high-tech manufacturing. On the downside, investment continued to weaken, capacity utilization declined, and consumer spending remained subdued, according to Bruce Pang, adjunct associate professor at CUHK Business School. 

The economy is expected to maintain a moderate recovery in the second half of the year, said Pang, adding that policy efforts will need to focus on stabilizing investment, boosting domestic demand and supporting industrial upgrading. 

(Cover via VCG)

The head of the U.S. central bank told lawmakers on Tuesday, July 1, that inflation will be a thing of the past with the monetary policy he’s overseeing.

Kevin Warsh delivered his first report to Congress as the latest inflation numbers showed recent price rises slowing.

But renewed fighting between the U.S. and Iran over the Strait of Hormuz is already driving energy costs back up.

Owen Fairclough has more.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

China's futures market saw robust growth – both in trading volume and turnover – in the first half of 2026, according to data released by the China Futures Association.

From January to June, the country's futures market recorded a total trading volume of 5.11 billion contracts, up 25.23% year on year. Total trading value reached 482.7 trillion yuan ($67.4 trillion), an increase of 42.08% from a year earlier.

The market saw growth in both trading activity and open interest during the period, attracting more industrial participants and institutional investors, said Li Yansen, chief macroeconomic analyst at the Founder CIFCO Futures Research Institute.

Among major contracts, CSI 500 stock index futures stood out, with trading volume surging 68.12% year on year. Trading volume for 10-year government bond futures rose 23%, reflecting growing hedging demand from financial institutions.

Stock index futures and government bond futures both recorded increases in trading volume, turnover and open interest, said Wang Jun, chief expert Gelin Dahua Futures Co. 

Wang said index futures and even treasury bond futures present significant investment opportunities this year.

As of the end of June, China had listed 167 futures and options products, covering key sectors of the economy, including metals, energy and chemicals, agricultural commodities and financial products.

Meanwhile, China's securities industry also showed positive data. So far, 10 listed brokerages have released earnings forecasts for the first half of 2026, with several reporting sharp year-on-year profit growth.

Leading firms such as CITIC Securities expects its profits to reach 23.34 billion yuan in the first half, up 69.59% from a year earlier. Guotai Haitong Securities forecasts its net profit excluding non-recurring gains and losses to range between 19.25 billion yuan and 19.76 billion yuan, representing year-on-year growth of 164% to 171%. 

(Cover via VCG)

Ports are shifting to remote digital operation, with data flows drastically boosting efficiency. In this episode of Old Industries - New Growth, we explore how ports are turning quieter in China. (Video generated with AI assistance)

After typhoon-triggered flooding cut off villages in south China's Guangxi Zhuang Autonomous Region, more than 100 volunteer drone pilots took to the skies, delivering water, food and other essential supplies.

What if the next hotel, apartment, or even data center in your city arrived by ship from China? With the global modular construction market set to top $140 billion by 2030, China is emerging as one of its biggest suppliers. Here's why. 

As badam fruits enter peak harvest in Shache County, China's Xinjiang Uygur Autonomous Region, local authorities are boosting sales through technical guidance, cooperative sorting and grading, and live-streaming e-commerce. Fresh green-husked badam fruits have attracted strong demand from outside Xinjiang through online sales. These coordinated efforts are delivering real income gains for local farmers and driving rural revitalization.

Artificial intelligence is disrupting the strategic balance of power in geopolitics, economics, and the military.

The Trump administration's attempt to restrict access to cutting-edge, "frontier" AI models has intensified concerns about global trade and cybersecurity.

In the U.S., it has also raised questions about the constitutional right to free speech.

CGTN's Alasdair Baverstock reports from Austin, Texas.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

China has released a draft amendment to its e-commerce law for public consultation, aiming to strengthen regulation of the platform economy, protect market participants, and improve industry governance.

Jointly issued by the State Administration for Market Regulation and the Ministry of Commerce, the draft contains 20 articles and sets out reforms across five key areas.

It expands regulatory coverage to include all participants in the platform economy, not only platforms and merchants, and further clarifies the rights and responsibilities to close existing supervisory gaps.

The draft also strengthens platform accountability by improving enforcement tools and refining responsibility mechanisms to ensure platforms fulfill their obligations and reduce disorderly market behavior.

To improve oversight efficiency, it introduces a unified approach to regulating online and offline business activities, while enhancing coordination between central and local authorities and across government departments.

It also targets prominent issues in the sector, including consumer rights violations and unfair competition, with the aim of improving market order and addressing public concerns.

At the same time, the draft emphasizes high-level opening-up, promoting alignment with international rules and standards, strengthening industry self-regulation, and safeguarding the overseas operations of Chinese e-commerce companies.

The authorities said that they will optimize the draft amendment in light of public feedback and work to advance the revision as soon as possible, providing a strong legal foundation for innovation and sound development of the country's platform economy.

(With input from Xinhua)

China's State Administration for Market Regulation and the Ministry of Commerce began soliciting public opinions on a draft amendment to the country's e-commerce law Saturday.

The draft amendment contains 20 provisions, including those aimed at broadening the law's regulatory scope. In addition to platforms and in-platform merchants, it would further clarify the rights and obligations of other participants in the platform economy.

It highlights the need to improve the liability framework for platforms, calling for a wider range of regulatory tools and stronger support for routine oversight.

Targeting cross-sector operations in the platform economy, the draft amendment calls for stronger coordination among regulators. Measures include applying consistent oversight to both online and offline businesses and strengthening cross-department collaboration.

To tackle serious illegal practices in the e-commerce sector, the draft amendment would revise relevant provisions in response to public concerns.

It also proposes steps to deepen opening-up and cooperation in the sector by promoting alignment with international rules and standards, encouraging industry self-discipline and orderly overseas expansion and adding measures to safeguard the legitimate rights and interests of companies.

The two authorities said that they will optimize the draft amendment in light of public feedback and work to advance the revision as soon as possible, providing a strong legal foundation for innovation and sound development in the platform economy.

Promoting innovation and sound development in the platform economy is a key task set out in the outline of China's 15th Five-Year Plan (2026-2030). The outline calls for stronger oversight of platform companies' data and algorithms, as well as their traffic and operating rules, while underscoring the need to foster mutually beneficial development among enterprises, merchants and workers.

The 2026 Global Digital Economy Conference is being held in Beijing from July 2 to 5. Zhu Jun, deputy director of the Institute for Artificial Intelligence at Tsinghua University, told CGTN's Hou Jing that China's robust demand for AI video scenarios is a major advantage for the rapid evolution of AI technologies.

Mountains of discarded plastic bottles, food containers, and packaging often end up in landfills or waterways, contributing to one of the world's most pressing environmental challenges.

But on the outskirts of Nairobi, an entrepreneur is giving that waste a second life by transforming it into durable fencing poles.

At a manufacturing facility in Syokimau, Machakos County, collected plastic waste is sorted, cleaned, processed, and compressed before being moulded into fencing posts and other products designed to withstand harsh weather, resist termites, and outlast traditional wooden alternatives.

Addressing Kenya's plastic waste challenge

The initiative is helping tackle Kenya's growing plastic waste problem while creating jobs and income opportunities for local communities involved in collecting and supplying recyclable materials.

Abbas Ateya, founder of Silverlink Manufacturing Limited, launched the business in 2015 after leaving his job in the construction industry. His idea was inspired by the shortcomings of conventional fencing materials.

"Whenever we installed fences using metal or wood, they were subject to vandalism," Ateya said. "We asked ourselves which material could be used that wouldn't be vandalised and would have no resale value. That's how the idea of plastic fencing poles was born."

The innovation comes as countries around the world grapple with plastic pollution.

According to the United Nations Environment Programme (UNEP), the equivalent of thousands of garbage trucks of plastic waste enters aquatic ecosystems every day, threatening marine life, ecosystems and human health.

Ateya believes locally driven solutions can play an important role in reducing the amount of plastic destined for dumpsites and waterways while supporting a circular economy.

His business relies on a network of waste collectors and suppliers in surrounding communities who gather, sort, wash, dry and transport plastic waste to the factory for processing.

Plastic collectors are key in the chain

Plastic collectors play a key role in the recycling chain, including George Saitoti Kirui, who has worked in plastic collection for five years and now leads a group of about 20 people.

"I have a family, and my family depends on this work," Kirui said. "Previously, I sold plastic for about 10 Kenyan shillings per kilogram. If I supply 10 tonnes, that's about 100,000 Kenyan shillings, which we share among the members of our group."

Beyond reducing plastic pollution, the recycled fencing poles offer an alternative to timber, helping reduce demand for wood products while providing customers with a more durable solution.

Elijah Kyengo, a landowner in Syokimau with a half-acre property, said he switched from wooden posts after termites repeatedly damaged his fences.

“In the past, I used wooden posts, but within two or three months, termites would destroy them,” he said. “I switched to plastic posts, and they last much longer. The ones I installed have now been there for five years.”

As governments and businesses search for practical ways to tackle the global plastic waste crisis, innovations like Ateya's demonstrate how discarded materials can be transformed into commercially valuable products, creating environmental benefits while generating economic opportunities for local communities.

Could building a house be like unboxing a package? That's modular construction — made in China, assembled anywhere! 150+ countries and regions are purchasing. This isn't just a good business, it's a smarter way to build houses.

If you're eating rice in China, there's a good chance a drone help grow it. Traditional farming is giving way to smart agriculture. In this episode of Old Industries - New Growth, we explore how new quality productive forces are transforming farming and helping secure food supplies for hundreds of millions of people. (Video generated with AI assistance)

The third meeting of the 2026 APEC Business Advisory Council (ABAC) concluded in Bangkok on Thursday, adopting a package of policy recommendations to be submitted to APEC leaders ahead of their informal meeting in November.

More than 200 ABAC members, alternate members and experts from APEC's 21 member economies attended the four-day meeting, discussing regional economic integration, sustainable development, digital innovation and connectivity. 

Participants approved a report to APEC leaders, six letters to ministers responsible for finance, energy, small and medium-sized enterprises, digital affairs, food and transportation, as well as three statements on quantum technology, healthcare and mining.

Ren Hongbin, chairman of the China Council for the Promotion of International Trade (CCPIT), addressed the closing plenary.

The CCPIT led a Chinese business delegation to Thailand. During the meeting, Chinese policy proposals on infrastructure and energy connectivity, cross-border QR code payments, zero-carbon transport, marine energy cooperation, sustainable agriculture, artificial intelligence and supply chain cooperation were incorporated into the meeting's outcome documents.

The CCPIT also jointly proposed an Asia-Pacific supply chain cooperation platform with US representatives and jointly advanced an APEC AI+ casebook initiative with Canada, aiming to strengthen regional cooperation on supply chains and emerging technologies.

(Cover via VCG)

China has rolled out a temporary ban on helium exports, said a joint notice issued on Friday by the Ministry of Commerce and the General Administration of Customs.

The ban, which took effect upon announcement, was made in accordance with China's foreign trade law, the notice said.

Further adjustments will be announced separately, it added.

Sweet melons in Shache County, northwest China's Xinjiang Uygur Autonomous Region, are in peak harvest, with farmers busy picking the fruit. Expanded planting and better quality have attracted steady buyers and established a solid market reputation. 

Melon growing has boosted local jobs and incomes, driving rural revitalization. Meanwhile, by improving varieties and sales links, the county is turning this small melon growing into a big industry for sustainable growth.

The 2026 Automotive Manufacturing Technology & Solutions exhibition kicked off in Shanghai on July 8. Over 700 exhibitors are showcasing their latest technologies that include everything from welding to painting. And this year, a growing number of foreign buyers are in Shanghai to look for solutions that Chinese suppliers can offer.

China's consumer prices maintained steady growth in June, while producer prices rose at a faster pace, reflecting resilient domestic demand despite external price fluctuations.

The consumer price index (CPI), a key gauge of inflation, rose 1.0% year on year in June, according to data released by the National Bureau of Statistics (NBS) on Thursday.

On a monthly basis, the CPI slipped 0.3%, mainly due to seasonal factors and fluctuations in global commodity prices, said Dong Lijuan, chief statistician at the NBS.

International market swings pushed domestic prices for gold jewelry and gasoline down by 8.7% and 4.9%, respectively. Food prices fell 0.4% from the previous month as seasonal fruits and vegetables entered the market in greater quantities, ensuring ample supply. 

Service prices were unchanged from May after a slight decline the previous month. Lower airline fuel surcharges and softer off-season travel demand drove down prices for hotel accommodation, airfares and travel agency services. 

The producer price index (PPI), which measures factory-gate prices, increased 4.1% year on year in June, supported by stronger demand in some domestic industries despite downward pressure from lower international crude oil prices.

Compared with the previous month, the PPI dropped 0.3% in June. Falling global oil prices weighed on energy-related sectors, with prices for oil and gas extraction declining 16.0% month on month and refined petroleum products falling 3.1%.

Seasonal demand also pushed up prices in several industries. As demand for coal reserves and cooling products increased during the summer, prices in the coal mining and washing industry rose 5.6% from the previous month. 

Industrial upgrading continued to support price growth in advanced manufacturing. Expanding AI applications, broader use of new materials and the country's green transition drove up prices for virtual reality equipment, wearable smart devices, industrial control computers and systems, and industrial robots.

Think the electric vehicle (EV) in your garage has nothing to do with Formula E racing? Think again. From the races to the technology under your hood, the line between the competition tracks and roads has never been thinner.

At Shanghai's double-header, CGTN's Wang Tianyu found that race teams are not just chasing podiums – they're mining race-day data to build your next car.

(Li Yuyang also contributed to the story.)

Prices on consumer electronics have been steadily climbing around the world due to a shortage of memory chips. 

CGTN's Mark Niu takes a look at why artificial intelligence is behind the rise.

For more, check out our exclusive content on CGTN Now and subscribe to our weekly newsletter, The China Report.

The International Monetary Fund (IMF) announced Tuesday that it reached a staff-level agreement with Zimbabwe on the first review of its 10-month Staff-Monitored Program, marking a further step in the country's efforts to restore macroeconomic stability, clear external arrears and re-engage with international creditors.

The IMF said implementation of the programme through the end of March was broadly satisfactory. All quantitative targets and structural benchmarks were met, including those on the primary budget balance, international reserves, Reserve Bank of Zimbabwe lending to the public sector, new external borrowing and growth of the ZiG monetary base. The only target not met was protected social and priority spending.

The staff-level agreement followed an IMF mission to Harare from June 9 to June 18 and is subject to approval by IMF management.

The Fund said Zimbabwe's economy remained resilient despite spillovers from the Middle East conflict, including higher fuel and fertilizer prices, transport costs and shipping disruptions. The economy grew 8.3% in 2025 and is projected to grow 5% in 2026, with inflation averaging 5.1%. Growth is expected to ease to 4.2% in 2027, although the IMF warned it could slow to 2%–3% if El Niño conditions intensify, alongside risks from a worsening Middle East conflict.

The IMF welcomed the government's commitment to keep spending within the approved 2026 budget, strengthen public financial management, maintain tight monetary policy and continue reforms to the foreign exchange market. It also urged Zimbabwe to protect social spending, strengthen governance and fiscal risk management, and continue work on debt restructuring and restoring relations with international lenders.

Representatives of China and Namibia met on July 8th in Chengdu, capital of southwestern China’s Sichuan Province, to discuss how to further advance bilateral economic and trade relations. The gathering, which brought together government officials, business leaders, and investors, explored new areas of partnership.

China has led the global industrial robot market for 13 straight years. From January to May, industry revenue surpassed 90 billion yuan ($13 billion). Robots are rapidly becoming the new face of "Made in China."

Editor's note: Li Hongchang is a researcher of Sustainable Transportation Innovation Center and professor at School of Economics and Management, Beijing Jiaotong University. Liu Ziyi is a PhD student at School of Economics and Management, Beijing Jiaotong University. This article reflects the authors' opinions and not necessarily those of CGTN's. 

Wide-scale deployment of AI across integrated transportation systems

Against the backdrop of global urbanization, surging multimodal travel demands and door-to-door logistical supply, modern transportation infrastructure confronts systemic bottlenecks including recurrent congestion, frequent safety hazards and excessive carbon emissions. Artificial intelligence, represented by traffic foundation large models, computer vision and digital twin simulation, has become a core transformative technology reshaping the operation paradigm of intelligent transportation systems (ITS). Unlike conventional post-event traffic management, AI realizes full-chain proactive perception, predictive deduction and optimal scheduling covering infrastructure monitoring, passenger flow organization, equipment maintenance and risk pre-warning. 

Driven by national industrial strategies such as China's "AI + Transportation" Initiative, the EU Sustainable Mobility Framework, and the AI for ITS Program for the US Department of Transportation, intelligent algorithms have been fully deployed in urban road networks, mass transit, civil aviation and intercity logistics, forming an all-dimensional collaborative intelligent transport ecosystem. As affirmed by the China Intelligent Transportation Systms Association, AI has evolved from laboratory pilot technology into a standardized core productive factor governing the whole transport industrial chain.

Authoritative domestic and overseas AI cases covering diverse transport modes

Typical cases released by China's Ministry of Transport and benchmark projects displayed at the ITS World Congress fully verify the technical maturity of AI transportation at home and abroad. In China's urban rail transit sector, the multi-modal passenger flow prediction large model of Shanghai Metro adopts hierarchical network dispatching during holiday peaks to balance line load and improve the efficiency of transport capacity allocation. The AI track defect identification system of Qingdao Metro raises inspection efficiency six times and cuts unplanned track downtime by 30%. In civil aviation, Beijing Capital International Airport has deployed AI agents for passenger diversion and apron conflict early warning to optimize passenger distribution in terminals and reduce ground operation risks of flights. In high-speed railway, AI-based intelligent dispatching system for high-speed railways leverages large models trained on historical passenger flow, weather, and equipment status data to automatically deduce delay propagation and intelligently adjust train crossing and overtaking schedules, significantly mitigating cascading delays during the Spring Festival travel rush and other holidays. As a flagship achievement exhibited at the 2026 ITS World Congress, the vehicle-road-cloud integrated platform in Shenzhen covers more than 4,000 kilometers of urban roads and delivers millisecond-level disposal responses to traffic incidents.

Overseas benchmark projects have generated quantifiable industrial benefits. The New York Metropolitan Transportation Authority leverages machine learning for predictive subway maintenance, achieving a defect recognition accuracy rate of 92% during the pilot phase. The Road Transport Authority of Dubai has launched commercial fleets of high-level automation Level 4 robotaxis, which are incorporated into the 2030 city-wide autonomous mobility roadmap and adapt to complex road conditions in desert cities. Deutsche Bahn adopts an AI-based vehicle digital twin system to accurately predict the life cycle of components and formulate differentiated maintenance schedules for regional trains.

Long-term development prospects of AI-driven transportation

AI-enabled intelligent transport has yielded remarkable economic, social and environmental gains by elevating operational efficiency, reducing traffic casualties and mitigating transport carbon footprints. Nevertheless, the industry is constrained by fragmented traffic data, insufficient algorithm robustness under extreme weather scenarios and incomplete hierarchical regulatory frameworks for autonomous vehicles. In the foreseeable future, three core evolutionary trajectories will dominate the intelligent transformation of transportation.

First, the vehicle-road-cloud-network-map integrated architecture supported by general traffic large models will be comprehensively popularized, breaking cross-modal data barriers and realizing full-scenario digital twin simulation for dynamic traffic optimization. Second, emerging mobility business forms will achieve large-scale commercialization: Mobility as a Service (MaaS) platforms will integrate rail, aviation and road travel, while Level 4 autonomous passenger vehicles and unmanned fleets will expand coverage in designated operation zones. Third, unified industrial standards for cross-regional traffic data sharing and tiered supervision codes for autonomous driving will be formulated to resolve institutional obstacles restricting industrial expansion. In sum, supported by iterative algorithm optimization and perfected governance mechanisms, artificial intelligence will serve as the fundamental pillar for constructing a safe, low-carbon and integrated sustainable comprehensive transportation system.

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