China creates state-owned firm in Xiongan to develop nation’s AI data resources

China has set up a new state-owned enterprise dedicated to managing the country’s massive data resources, a significant move designed to turbocharge the nation’s artificial intelligence industry and bolster its digital economy.
The National Data Group Co – based in China’s “city of the future”, Xiongan New Area in northern Hebei province – is tasked with “developing and utilising data resources, unlocking the value of data elements, serving AI development and fostering a data industry ecosystem”, according to a report by state news agency Xinhua.
Vice-Premier Ding Xuexiang attended the company’s launch ceremony on Tuesday. Ding described the creation of the state-owned company as a “major strategic decision” made by the party leadership, led by President Xi Jinping.
The move was crucial for China to “seize the initiative in AI development, accelerate the construction of a ‘digital China’, and build new national competitive advantages”, Xinhua quoted Ding as saying.
The creation of the new company came as Xiongan, known for housing state-owned institutions relocated from Beijing, moves to nurture its own industries and attract technology firms, according to reporting by the South China Morning Post.
Officials were looking to attract tech companies that could reach valuations of 10 billion yuan (US$1.5 billion) and potentially list on major stock markets – including Hong Kong’s – over the next few years, according to sources. Key target sectors included AI, satellite internet and robotics, they added.
Established in April 2017 under a plan championed by Xi, Xiongan spans three counties and surrounding areas in Hebei province, about 100km (60 miles) southwest of Beijing.
State-owned enterprises have anchored the first wave of arrivals. China Satellite Network Group and China Huaneng, a major power generation company, have moved their headquarters to Xiongan. Since 2023, Xiongan has attracted 157 second- and third-tier subsidiaries of central state-owned enterprises.