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Smart factories across China explore new models of manufacturing

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Cars no longer have to be built on a traditional assembly line. In China, production is increasingly organized around what are known as “manufacturing islands.”
An intelligent island manufacturing system in the body shop of joint venture SAIC-GM-Wuling in Liuzhou, south China’s Guangxi Zhuang autonomous region, presents a striking scene: individual “smart process islands” operate independently yet remain interconnected. Together, three major island clusters enable the efficient mixed production of 24 different vehicle models.
“Model changeovers now take just two hours versus two days previously,” said Yuan Yuzhu, senior manager of the final assembly workshop of the joint venture, pointing to a digital display screen.
“This has increased overall equipment effectiveness by 20 percent and reduced new model introduction costs by 35 percent. Behind these figures lies a fundamental shift in manufacturing logic,” Yuan added.
At the plant’s intelligent general assembly island, technologies such as modular switching allow different vehicle models to share the same assembly platform.
“Traditional lines are rigid like one-way roads,” explained process engineer Cai Lin. “Our island system provides Lego-like flexibility while cutting equipment investment by 40 percent.”
To build a smart factory that can think and evolve, SAIC-GM-Wuling has adopted a self-developed AI-driven operational model, enabling highly coordinated use of resources across the entire industrial chain, from production scheduling and warehousing to material distribution. The factory’s overall level of intelligence has reached 75 percent.
Since the completion of the island-based smart factory at the end of 2023, manufacturing efficiency has increased by 30 percent; model changeover time in the body shop has been cut by 67 percent; investment in new product manufacturing has been reduced by 30 percent.
In 2025, the company’s output value once again surpassed 100 billion yuan ($14.38 billion), up 24 percent year on year, while annual sales of new energy vehicles exceeded one million units for the first time, marking a year-on-year increase of 31.9 percent.
Built on process decoupling and production-line restructuring, SAIC-GM-Wuling’s automotive island-based smart factory is one of China’s 15 flagship smart factories recently announced.
China is currently accelerating the digital and intelligent transformation of its manufacturing sector. Since 2024, six government departments including the Ministry of Industry and Information Technology have jointly launched a smart factory gradient cultivation action for two consecutive years, developing them across four levels.
To date, China has built more than 35,000 basic-level smart factories, over 8,200 advanced-level facilities, more than 500 excellence-level factories, and 15 flagship smart factories.
Selected as the top among top, the first batch of China’s flagship smart factories covers key sectors including equipment manufacturing, raw materials, and electronic information, located in 10 provincial-level regions, such as Shanghai, Jiangsu, Zhejiang, Shandong, and Hubei.
Wang Minghui, director of the industrial research office at the Development Research Center of the State Council, noted that flagship smart factories integrate advanced manufacturing technologies, next-generation information technologies, and lean management concepts. Tasked with exploring future manufacturing models, they represent the pinnacle of China’s intelligent manufacturing pyramid.
The core value of smart factories lies in reshaping production logic and unlocking industrial momentum. Flagship smart factories are continuously exploring new manufacturing models in practice, from automotive plants achieving flexible mixed-model production, to petrochemical facilities operating autonomously through digital twins, and to optical fiber plants overcoming the limits of ultra-large preform manufacturing. With high efficiency, precision, flexibility, and quality, they are setting transformation benchmarks for their respective industries.
As technological innovation accelerates, intelligent manufacturing is evolving faster than ever.
For example, Gree Electric Appliances, a leading Chinese home appliances maker, has achieved full digital coverage in its flagship smart factory, doubling production efficiency. The flagship factory of Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC), a Chinese supplier of optical preform, fiber and cables, has fully integrated AI throughout its production process, enabling micron-level precision control at temperatures above 2,000 degrees Celsius. Its fiber drawing line achieves a world-leading speed of 3,500 meters per minute–entirely without human intervention.
Statistics show that across the 15 flagship smart factories, average production efficiency has increased by 29 percent, while product defect rate has dropped by 47 percent. Meanwhile, AI has been applied in more than 70 percent of business scenarios in these factories, resulting in over 6,000 vertical-domain models and driving the large-scale application of more than 1,700 key intelligent manufacturing equipment systems and industrial software solutions.
Intelligent manufacturing is moving beyond reactive automation, entering a stage of proactive, self-optmizing system.
“We will open and share our technical standards with supply chain partners,” said Wei Xiaowen, SAIC-GM-Wuling’s manager of integrated planning. “After adopting the intelligent island manufacturing model, Liuzhou Saike Technology Development Co., Ltd. has seen its manufacturing efficiency increase by 30 percent.”
Notably, smart factories are creating ripple effects that increasingly drive industrial collaboration. The 15 flagship smart factories are no longer just producers of high-end products; they are evolving into comprehensive providers of products, services and solutions, driving broader industrial transformation. To date, they have facilitated coordinated upgrades among more than 1,300 upstream and downstream enterprises, enhancing value across entire industrial chains.
Looking ahead, China’s smart factories are poised to deliver greater benefits to the world. Innovation will drive progress, tiered capacity-building will strengthen their foundations, and ecosystem-wide collaboration will help break down barriers.

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Shantou taps new growth momentum via AI token exports

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By Li Gang, People’s Daily

As artificial intelligence (AI) accelerates the transformation of global industries, a new form of digital trade is emerging in the southern Chinese city of Shantou: exporting computing services measured not in physical goods, but in AI tokens.

In late April, Shantou, Guangdong province completed full-chain verification for what has become known as “token exports” — a model in which computing power remains within China while high-value AI services are delivered to overseas users. Within just one month, average daily token usage surged from 100 million to the tens-of-billions level.

The practical application of this model is already well underway. 

Recently, when a user in Singapore activated an AI-powered toy and gave a simple command — “Tell me a fairy tale” — the spoken command traveled through the network directly to a dedicated overseas computing zone inside a computing center in Shantou. 

Local deployed AI agents wrap up speech recognition in under one second and craft custom story content, firing the finished audio back to the Singapore-based toy device in as little as 0.1 seconds.

The user repeated the process multiple times, eventually listening to five stories in total. Approximately 100,000 tokens were consumed during the interaction and billed in real time at a rate of 2 yuan ($0.3) per one million tokens.

When payment arrived, a complete commercial cycle was achieved, marking the successful realization of Shantou’s “token export” model.

Tokens represent the smallest discrete calculation unit for large AI models to process information. They have become a key indicator of intelligent computing capacity and, increasingly, a new carrier of value in the digital economy.

Inside the China (Shantou) Pilot Zone for Economic and Cultural Cooperation with Overseas Chinese, token exports are already transforming the economics of electricity.

Today, overseas users across multiple countries and regions in Southeast Asia are accessing token services generated in Shantou.

“Data flows in from abroad and all processed outputs head back overseas, with zero compromise to end-user experience,” explained Cai Qichen, an engineer at the Shantou Branch of wireless carrier China Mobile. “Token costs have already been integrated into product service packages, making future usage more convenient.”

According to estimates from toy manufacturer SHOWMAC based in Shenzhen, Guangdong province, using Shantou’s computing services reduces costs by more than 30 percent compared with directly purchasing overseas computing resources.

Meanwhile, inside computing centers, turning electricity into AI tokens delivers dramatic value appreciation. A kilowatt-hour of electricity, which comes at a cost of roughly 0.5 yuan($0.07) , can be transformed through AI computing into tokens and then exported at a price of 11 yuan($1.6), representing a twenty-two-fold increase.

As one of eastern Guangdong’s major offshore wind power bases, Shantou has already connected 1.2 million kilowatts of installed capacity to China’s power grid.

The electricity itself does not need to cross borders. Computing power remains within China. What gets exported instead are high-value digital services, turning electricity into a form of hard currency for cross-border digital trade.

Ultra-low network latency forms the technical backbone making token exports feasible.

“More than half of China’s outbound bandwidth carried by international submarine cables lands in Shantou, and the city is also home to five undersea trunk cables linking destinations worldwide,” said Hong Zhebin, chief technology officer of the international submarine cable landing station operated by the Shantou branch of wireless carrier China Telecom.

“The latency between Shantou and Singapore is only 32.7 milliseconds, quicker than the blink of an eye,” Hong added.

Hong Yu with the Shantou Branch of China Mobile, added that Shantou’s overseas computing services offer stable response speeds, regulatory compliance, and substantial cost advantages.

“Our pricing is only 1/3 to 1/2 that of mainstream international platforms, while customer retention exceeds 70 percent,” Hong told People’s Daily.

Yet building a complete end-to-end system is only the starting point. Shantou is now attempting to transform itself from a transit city for digital infrastructure into an ecosystem hub.

Leading computing companies and developers are gathering rapidly. Pilot platforms have passed acceptance reviews. Commercial closed loops have already emerged in applications ranging from AI toys to intelligent manufacturing, with large-scale operations expected soon.

Shantou’s Chenghai district has long been known as the “toy capital of China.” As AI becomes increasingly integrated with the toy industry, the city has launched an AI toy innovation center and the Shantou AI Laboratory, striving to become the “AI toy capital of China.”

At the exhibition space of one local tech firm sits Amy, an AI desktop robot capable of fluid multilingual conversation.

“It is equipped with a multilingual intelligent voice interaction system capable of real-time recognition and conversation in dozens of languages,” said the company’s general manager Chen Ruifeng.

The technology has already been integrated into multiple AI toy products exported to countries including the United Kingdom, Russia, and Japan.

Shantou’s token export model allows AI toy manufacturers to access domestic large language models at costs far below those of overseas alternatives.

“The cost of using overseas AI models can be dozens of times higher than domestic models,” Chen said. The company’s AI toys currently run on Chinese large models including DeepSeek and Doubao.

“Token exports have significantly increased both product value-added and international competitiveness,” he said.

The Shantou branch of wireless carrier China Unicom, together with a Guangdong-based tech firm, has established dedicated lines connecting Shantou and Vietnam, delivering cross-border computing services to Aachen Sv, a Chinese-invested fiber-optic company operating in Vietnam.

Vietnamese users accessing large models such as DeepSeek and Qwen experience extremely low latency with zero packet loss. “In less than a month, more than a dozen companies have approached us for consultations,” an employee of the Guangdong-based tech firm said.

Meanwhile, the Guangdong branch of China Mobile has launched an OpenClaw intelligent agent framework, providing integrated AI service packages that allow traditional toys to complete intelligent upgrades in as little as 15 days.

From toys to textiles, cross-border e-commerce, and high-end manufacturing, tokens are increasingly becoming the digital fuel powering Shantou’s industrial upgrading.

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Sanxingdui Museum transforms ancient relics into interactive experiences

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By Song Haoxin, People’s Daily

What if museum visitors could truly interact with cultural relics rather than merely observe them through glass displays? At the Sanxingdui Museum in southwest China’s Sichuan province, a specially designed interactive hall is revolutionizing cultural engagement.

Within this 1,300-square-meter space, nearly every exhibit invites touch, operation, or participation. Visitors immerse themselves in installations inspired by the ancient Shu civilization, blending education with entertainment.

By trying on replicas of headwear on bronze statues discovered in Sanxingdui Ruins, for example, visitors can not only take photos of themselves but also learn about the symbolic meanings behind different headpieces. 

Guests can don replicas of bronze statue headwear from the Sanxingdui Ruins, learning their symbolic meanings while capturing photos. Augmented reality allows dancing alongside virtual Sanxingdui figures for social media sharing. A creation zone even enables “time travel” to experience ancient bronze-casting and construction techniques.

These innovations transform traditional museum visits, offering deeper cultural understanding through hands-on interaction. “This hall emerged from extensive brainstorming,” explained Zhu Yarong, deputy director of the management committee of the Sanxingdui Ruins site. 

“We’re transitioning from passive relic viewing to interactive engagement, bridging the gap between audiences and history.”

Previously, museum experiences were largely one-directional with limited engagement. Visitors viewed relics through display cases, usually stopping mainly to take photographs, with relatively limited forms of engagement. By liberating artifacts from display cases into interactive settings, Sanxingdui is pioneering a shift from didactic presentation to open cultural dialogue.

Traditional exhibition spaces remain popular, while digital innovations attract growing interest. A VR project employs digital twin technology to recreate 1:1 scale excavation sites — complete with protective shelters and cabins — placing visitors at the archaeological forefront.

Another project, Heaven and Earth Echoes — Sanxingdui Panoramic Sound and Vision Digital Art Theater, features an interactive panoramic LED dome with a diameter of 20 meters and a resolution approaching 16K. The massive dome creates a deeply immersive atmosphere. By waving digital torches in their hands, visitors can trigger sacred birds to circle above them across the dome, experiencing the ancient Shu civilization through an interplay of sound and imagery.

“The digital technology made me feel as if I were racing across the Mamu River. That sense of traveling through time was incredible,” said Hao Yong, a tourist from southwest China’s Chongqing municipality who came specifically to experience a virtual reality program.

From passive observation to active participation, Sanxingdui Museum continues introducing new interactive experiences that transform cultural relics into living carriers of dialogue and engagement, helping keep the sparks of Chinese civilization alive for new generations.

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A living testimony about MKA: The Aondoakaa that I know Written By Brahms Tor-Ikuan

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My people of Benue State,

I am not speaking to you today as a politician. I am speaking as a brother whose family was held up by Chief Mike Kaase Aondoakaa, MKA, when we had no one else to hold onto.

My elder brother, Verem Ukaa-Ikuan, was not just my blood. He was a very dear and close friend to Chief MKA. When my brother fell ill and was diagnosed with liver damage caused by poisoning, MKA didn’t treat it as someone else’s problem. He took it on as his own.

He worked closely with Verem during his time as Attorney General of the Federation, and when the sickness came, he moved immediately. Searches were conducted, and Apollo Hospital in India was earmarked for a liver transplant. Every travel arrangement was made personally by Chief MKA.

But we hit a wall. Verem was too weak to fly a long commercial flight. Only an air ambulance could get him to India alive. At that time, there was only one functional air ambulance in the entire country, owned by Julius Berger. It was completely out of reach for even the most high-profile citizens.

Chief MKA went all out. He did not give excuses. He did not delay. He used every connection and every ounce of influence he had to secure that air ambulance for my brother.

On the day it was secured, Barr. Terna Yaji, his Senior Special Assistant, called me a few minutes after 6pm. He told us to prepare Verem for departure and take him to Makurdi airport very early the following morning. I informed him, my brother passed on at exactly 6 o’clock a few minutes ago. I told Barr. Terna Yaji, and I saw a devastated MKA.

During the burial, Chief MKA was out of the country on national assignment. He was pained that he could not be there physically. His entire team, led by the late Onov Tyuulugh, represented him fully. And his message to us at the burial has never left me:

“If death were law, as the Attorney General, a law would have been made no matter what to ensure Verem will just not die but live forever.”

That is who Mike Kaase Aondoakaa is when nobody is watching. He does not abandon his people. He does not forget. He stood with our family then, and he has stood with us till date.

Now he is asking for the chance to govern Benue State.

Benue needs a governor with a heart like that. A governor who fights for you even when there’s no political gain. A governor who sees you as family, not as a vote.

I am standing with Chief Mike Kaase Aondoakaa for Governor of Benue State.
For compassion that moves to action.
For loyalty that does not fade.
For leadership that proves itself in the darkest hour.

Join me. Let us give Benue a leader who has already shown what he will do for us.

God bless Chief Mike Kaase Aondoakaa.
God bless Benue State.

Brahms Tor-Ikuan, a beneficiary of MKA’s benevolence writes from Makurdi

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