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.

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.