China cities feed AI economies with dedicated services as race with US picks up pace

China’s city governments are racing to stake out a role in artificial intelligence, with Wenzhou this week becoming the nation’s first to set up a dedicated bureau for AI-related matters – underscoring how local officials are ramping up efforts amid Beijing’s push to gain an edge in the AI race with the United States.

Authorities in Wenzhou, located in the provincial economic powerhouse of Zhejiang, announced the bureau’s formation at a high-profile AI Innovation and Development Conference on Wednesday.

Wenzhou’s new bureau – hailed by state broadcaster CCTV as a first among Chinese cities – will oversee AI planning and policies, coordinate computing power and data resources, and push “AI+” projects across industries. Officials said the move was not a symbolic reshuffle, but rather a sign that the city intends to make AI a central plank of its growth strategy.

The city has been building out its digital infrastructure, hosting more than 900 billion public data entries and 16 laboratories that can feed AI-model training. It is also investing heavily in green energy, with installed power capacity expected to reach 20 gigawatts by the end of this year and 30GW by 2030 – resources that officials said will underpin their AI ambitions.

But Wenzhou’s push reflects how even second-tier Chinese cities are now scrambling to carve out a role in AI as Beijing leans on local governments to fuel national competitiveness in the field against the backdrop of an intensifying rivalry with Washington.