By Liu Juanxi, People’s Daily

“Digital and intelligent transformation” is a frequently quoted term in the outline of China’s 15th Five-Year Plan (2026-2030) for National Economic and Social Development.

What exactly does this term mean?

As the term suggests, it represents the deep integration of digitalization and intelligent technologies. Building on the foundations of digitalization, it incorporates artificial intelligence (AI) technologies, including intelligent decision-making and deep perception, to analyze, predict, and address complex problems and support practical applications.

The shift in wording, from “digitalization” in the 14th Five-Year Plan to “digital and intelligent transformation” in the 15th, reflects China’s efforts to embrace the latest technological revolution and industrial transformation. Driven by the rapid development of AI, the country is steadily moving toward a new stage of high-quality development.

In the past, China’s digital industry was large in size but not sufficiently developed, and the country’s computing-power infrastructure needed significant improvement. 

In recent years, however, construction and investment have accelerated. In 2025, China’s core AI industry exceeded 1.2 trillion yuan ($176.52 billion). By the end of March this year, the country had built 4.958 million 5G base stations. The eight national computing hubs under the “East Data, West Computing” initiative have developed into major computing clusters, and China’s total computing capacity now ranks second in the world. These advances have laid the foundations for the country’s digital and intelligent transformation.

Why, then, is China placing such emphasis on this transformation?

Digital and intelligent transformation represents an evolution in the development philosophy of enterprises.

To address challenges in mining operations, Guangxi Liugong Machinery Co., Ltd. has developed a smart mining solution. Guided by an intelligent dispatch system, unmanned excavators can perform precision operations while autonomous mining trucks automatically plan their routes.

In the past, mining relied heavily on manual labor, involving high risks and significant margins of error. With the smart mining solution, the entire process can be operated without human intervention, reducing safety risks while significantly improving efficiency.

An increasing number of companies are using digital and intelligent innovation to develop new equipment, build smart workshops and intelligent factories, and improve efficiency and productivity. The transformation is injecting fresh vitality into industrial development.

Digital and intelligent transformation is empowering a wide range of sectors, creating new business models and opening up fresh sources of economic growth.

The intelligent robotics industry provides a vivid example.

At the School of Artificial Intelligence and Robotics of Hunan University, researchers have developed a bionic dual-arm robot capable of grasping glass bottles and placing them onto pharmaceutical spectrometers for sample testing. The robot is able to think and analyze like humans and perform complex experimental tasks.

“We’ve created a ‘physical feedback learning’ mechanism, enabling the robot to become smarter through continuous practice,” said Zhang Hui, dean of the school.

Digital and intelligent transformation requires industrial equipment to possess adaptive and self-learning capabilities, driving strong market demand for intelligent robots. In turn, this demand is creating new business opportunities throughout the industrial chain, including sensing systems, decision-making systems, execution systems, and systems integration, generating new engines of economic growth.

Digital and intelligent transformation will also provide powerful momentum for developing new quality productive forces.

At the end of last year, China successfully tested the world’s first 35,000-ton heavy-haul train convoy system. Seven 5,000-ton freight trains operated in coordination without being mechanically coupled in the traditional way. Instead, they relied on a domestically developed intelligent system that enabled them to accelerate and brake simultaneously.

This transition in railway freight transport, from “mechanical coupling” to “intelligent connectivity,” offers a model for developing new quality productive forces across industries.

What more efforts are needed to complete the shift from “digitalization” to “digital and intelligent transformation?”

China’s 15th Five-Year Plan provides a clear roadmap.

The country will coordinate the development of computing infrastructure, model algorithms, and high-quality data resources to strengthen the foundations for digital and intelligent development. 

It will fully implement the “AI Plus” initiative, integrating AI with scientific and technological innovation, industrial development, cultural advancement, public services, and social governance, while striving to seize the commanding heights of AI applications and comprehensively empower all sectors of the economy.

At the same time, China will pursue development and regulation in tandem, improve the basic institutions and rules governing data, strengthen AI governance, and foster a development environment that is beneficial, secure, and fair.

By making effective use of cutting-edge technologies, enhancing productivity and social governance capabilities, and helping build a society that is more resilient, dynamic, and efficient, China is embracing digital and intelligent transformation across all industries and sectors.

By Cao Wenxuan, People’s Daily

On Dec. 18, 2025, the Hainan Free Trade Port officially launched island-wide special customs operations. Since then, many businesses have shifted from a wait-and-see stance to strategic layout, and from tentative trials to in-depth development.

Statistics show that between the launch of island-wide special customs operations and May 31, 2026, a total of 172,100 new market entities were registered in Hainan, a year-on-year increase of 61.07 percent. Among them, 139,500 were newly established enterprises, up 123.04 percent.

What underpins this magnet effect? How do policy advantages translate into developmental thrust? Three illustrative cases provide insights:

Global Repair Hub Redefining Value Chains

On the first day of island-wide special customs operations, the Haikou branch of SonoScape Medical Corp fulfilled the first order of bonded maintenance services for both-ends-abroad clients for endoscopes. The company, headquartered in Shenzhen, south China’s Guangdong province, sells independently developed products to more than 170 countries and regions.

A July 2025 Hainan policy revision classified endoscopes among 38 approved items eligible for internationally oriented bonded maintenance. As general manager Li Xiaoxi explains, offshore service centers often lack advanced repair capabilities, while some replaced components historically faced import restrictions. The Free Trade Port now enables comprehensive refurbishment, reuse, and value-chain upgrading.

“This facilitates the repatriation of high-value industrial segments previously anchored overseas,” Li emphasized.

Six Hainan enterprises now hold bonded maintenance licenses, with three activating operational frameworks. Fifteen international maintenance batches exceeding 3.5 million yuan ($516,620) have been processed under the updated regulatory regime.

Advanced Manufacturing Anchor Ignites Development

At the Yangpu Economic Development Zone in Danzhou, Hainan, construction is in full swing on the Siemens Energy Hainan Gas Turbine Assembly Base and Service Center, which is scheduled to begin operations in 2027.

“This is a comprehensive facility integrating manufacturing, final assembly, engineering services, and research and innovation,” said Li Rui, deputy general manager of the energy development department at Yangpu International Investment Consulting Co., Ltd. “It is also the first landmark foreign-invested manufacturing project to be established in Hainan after island-wide special customs operations were launched.”

The relationship between Yangpu Economic Development Zone and Siemens Energy dates back more than three decades.

“In 1994, just two years after the Yangpu Economic Development Zone was established, development was still in its early stages. We introduced two Siemens gas turbines to address power shortages,” recalled Hu Cheng, chief engineer of Yangpu Power Plant. 

At the time, the turbines were among the most advanced in the world and played a crucial role in supporting the development zone’s early growth. Over the years, Siemens Energy regularly dispatched specialists for maintenance work, and engineers from both countries forged lasting friendships.

Siemens Energy conducted inspection tours for potential cooperation in 2023, set up its Hainan innovation center in 2024, and has now launched a brand-new facility here. The company keeps ramping up investment out of not only long-standing ties but also full confidence in the Hainan Free Trade Port’s long-term growth, an executive of Siemens Energy Greater China explained.

While serving Hainan, the facility will also be developed into a regional center for high-end clean-energy equipment manufacturing and services covering Southeast Asia.

“Hainan enjoys clear geographical advantages and is building itself into a clean-energy island. Yangpu has a deep-water port located close to major international shipping routes. Combined with free trade port policies such as zero tariffs and visa-free access, the conditions for development are highly favorable, ” the executive added.

Longtime partners are expanding their presence, while new investors continue to arrive. Between the launch of island-wide special customs operations and May 31 this year, Hainan registered 1,240 new foreign-invested enterprises, representing year-on-year growth of 37.62 percent.

A New Exploration

Before island-wide special customs operations, the Hainan Free Trade Port’s hallmark policies, characterized by zero tariffs, low tax rates, and a simplified tax system, were primarily designed to support industrial development and businesses.

How can these benefits more directly reach everyday consumers?

In February this year, Hainan introduced a new policy granting zero-tariff treatment to imported goods purchased by residents within the Hainan Free Trade Port. The first five duty-free stores for daily consumer goods opened in Haikou, Sanya, and Danzhou.

 The initiative spans 202 categories of high-turnover consumer goods, including foods, personal care items, household essentials, and maternal & infant products. Eligibility extends to Hainan-registered residents, local residence permit holders, and qualifying foreign permanent residents, each entitled to shop duty-free with an annual cap of 10,000 yuan. This enables island residents to globally source premium goods locally — without leaving Hainan.

The new policy quickly attracted widespread attention. Shao Yuanyuan, manager of a duty-free daily consumer goods store operated by China Duty Free Group, recalled that hundreds of shoppers packed the store on the opening day, eager to explore the new shopping experience.

According to Haikou Customs, between the launch of island-wide special customs operations and May 31 this year, sales for offshore duty-free shopping reached 20.34 billion yuan, up 20.5 percent year on year.

“I believe the duty-free policy for Hainan residents will continue to be refined, just as the offshore duty-free policy has evolved over time,” said Hao Zhiqiang, deputy general manager of Haikou International Duty Free City. “It will enhance the quality of life for local residents while creating even greater opportunities for businesses.”

By Xian Gan, People’s Daily

On June 25, 2021, the Lhasa-Nyingchi Railway, the first electrified railway in southwest China’s Xizang autonomous region, officially entered service. 

Stretching more than 400 kilometers, the “steel dragon” links the cities of Lhasa, Shannan and Nyingchi, introducing rail service to southeastern Xizang for the first time.

As of June this year, the railway has transported 6.25 million passengers and delivered more than 2 million tons of cargo over five years of safe and stable operation. This latest “heavenly road” across the snowy plateau has boosted the high-quality development of industries such as agriculture, animal husbandry and tourism, while bringing a better life to people living along the route.

With the summer vacation approaching, Galsang Tsom, a student at the Xizang Middle School in Wuhan, central China’s Hubei province, has already begun checking train ticket information on her phone.

Before attending junior high school and later moving to Wuhan for studies, she lived in Nyingchi. The train is now her preferred mode of travel between Wuhan, Lhasa, and Nyingchi.

Comparing her experience to her aunt’s (the first university graduate in their family) who recalled arduous journeys starting long before dawn from Motuo County just to reach Lhasa, Galsang notes the contrast: her train journeys are filled with fellow students sharing campus stories and parents discussing home, making the carriages lively and connected.

Prior to the railway, residents relied heavily on long-distance buses or private vehicles. Now, as noted by Han Chunwang, stationmaster of Shannan Railway Station, travel time between Nyingchi and Lhasa has been dramatically reduced from seven to eight hours by road to just over three hours. Commuting between Shannan and Lhasa takes roughly one hour, making rail the preferred choice, with regular travel between Lhasa and Nyingchi becoming commonplace. The railway now serves an area of over 200,000 square kilometers, directly benefiting more than 1.3 million people.

The freight yard on the western outskirts of Lhasa is a hive of activity. Cases of natural mineral water produced in Shannan are being loaded into train wagons by forklifts, awaiting shipment.

In the past, transportation constraints made it difficult for products such as mineral water to be shipped outside the region on a large scale. In recent years, however, the opening of the Lhasa-Nyingchi Railway and other lines, together with the upgrading of the entire Qinghai-Xizang Railway, has brought Xizang into much closer contact with the rest of the country.

“More than 40,000 tons of feed are transported here by rail every year. Once the Shannan freight yard comes into operation, our costs will fall even further,” said Zhang Honglin, head of a local agricultural development company. The company’s modern poultry farm now produces 1.5 million eggs a day.

“We don’t just supply the Xizang market,” Zhang said. “We also aim to sell our high-quality eggs to other parts of the country by rail.”

The Lhasa-Nyingchi Railway has built a fast track for local goods to be shipped out of Xizang. Unique local products including Tibetan pigs, yak meat and matsutake, once plagued by high transport costs and poor preservation conditions, now travel efficiently from the snowy highlands straight to dining tables across the country. This provides sustained impetus for all-around rural revitalization.

At the same time, building materials, grain, fertilizers and other essential supplies are flowing steadily into southeastern Xizang, providing stronger support for prosperity and development in the region.

It is reported that the railway’s average daily freight volume in 2026 is 35.7 times higher than in 2021.

“Since the train started running, the rail service has put Gala village firmly on the map,” said villager Bianpa while strolling hand-in-hand with his mother under a peach tree at the village gate in Bayi district, Nyingchi.

The wild peach trees on the surrounding hills once attracted little attention, but they have now become one of the area’s most beautiful attractions, drawing large numbers of visitors every year.

In recent years during the annual peach blossom festival, local authorities have launched free shuttle buses with newly added stops at Gala village and the railway station. The routes connect scenic spots across downtown Nyingchi, offering convenient public transportation and seamless transfers for visitors and local residents.

Since the beginning of this year, Gala village has received more than 100,000 visitors and generated tourism revenue of over 3 million yuan ($442,188). The once-remote mountain village has become a shining example of a “happy village” on the snowy plateau.

Not far from Nyingchi Railway Station lies the Yani National Wetland Park, the first stop for many visitors arriving by train. Located at the confluence of the Nyang River and the Yarlung Zangbo River, the park is known for its shimmering waters and lush forests.

The area once saw very few visitors because of inconvenient travel conditions. The launch of the Lhasa-Nyingchi Railway and supporting road networks has boosted the integration of rail and tourism, bringing about remarkable progress.

To cater to growing tourism demand, local authorities have introduced activities like rafting and boat tours through submerged forests, encouraging longer stays and richer experiences.

“I was worried that, at my age, I might struggle to adapt to the high altitude,” said a 66-year-old tourist surnamed Wang from Shanghai. “But seeing that the trains are equipped with oxygen-supply facilities really put my mind at ease.”

Statistics indicate that monthly passenger volume on the Lhasa-Nyingchi Railway has climbed from an initial 59,000 to a peak of 153,800. In the recent five years, more than 8,000 passenger trains have run on the line, alongside over 100 special tourist trains heading into the region.