China inaugurated a state-owned data company to support its AI push

China has established a state-owned entity in Xiongan, a futuristic city in northern Hebei province, to harness the nation's vast data resources and propel its artificial intelligence (AI) industry. The newly formed National Data Group Co will manage data assets, extract value from them, and support AI development, according to state news agency Xinhua.

Vice-Premier Ding Xuexiang inaugurated the company recently, describing its creation as a crucial strategic decision led by President Xi Jinping to secure China's position in AI development, advance a "digital China," and establish new competitive advantages. Xiongan, which currently hosts relocated state-owned institutions from Beijing, aims to cultivate its own industries and draw in technology firms that could reach 10 billion yuan (US$1.5 billion) valuations and potentially list on major stock markets, including Hong Kong's.

The focus lies on sectors like AI, satellite internet, and robotics. Initially planned in April 2017 by Xi, Xiongan encompasses three counties and surrounding areas in Hebei province, roughly 60 miles southwest of Beijing. State-owned enterprises like China Satellite Network Group and China Huaneng have already moved their headquarters to the city.

Since 2023, Xiongan has welcomed 157 second- and third-tier subsidiaries of central state-owned enterprises.