Economic Commentary: Why is Chongqing Betting Big on AI Agents?

On June 30, Mayor Hu Henghua emphasized during his research on the software and information technology industry in Liangjiang New Area that the upgraded "Gypsophila" action plan must prioritize the development of AI agents as a key focus. AI agents represent the most cutting-edge and high-profile direction in the current field of artificial intelligence, often hailed as the "crown jewel" of AI.

Amid the nationwide wave of cities vying for dominance in AI, what gives Chongqing its confidence? Through careful analysis, it becomes clear that this is not a fleeting trend but a well-considered strategy. Behind the flurry of activity lies a meticulously planned, logically coherent, and far-sighted blueprint that has long been in motion. In the author's view, Chongqing's pursuit of AI agents - this frontier breakthrough - is grounded in at least five layers of deliberate calculation.

The first layer is the energy foundation, which instills strategic confidence for long-term development. Modern industries, particularly high-tech sectors, are built upon reliable energy supply. In June of this year, the Hami-Chongqing ±800 Kilovolt Ultra-high Voltage Direct Current (UHV DC) Power Transmission Project officially commenced operation. This clean energy artery provides Chongqing - a major manufacturing hub - with a long-term, cost-competitive power supply.

On the surface, this electricity will integrate into the city's grid, serving countless industries without a direct link to AI. However, its strategic significance lies in addressing the fundamental energy concerns of urban industrial upgrading, allowing policymakers to focus on planning high-energy-consumption future industries without distraction. More importantly, the success of this major project validates the feasibility of cross-regional resource coordination between Xinjiang and Chongqing, bolstering confidence for even bolder strategic visions in the future.

The second strategic consideration lies in computational power - forging a core cost advantage for the AI industry. While the Xinjiang-Chongqing power transmission resolves confidence issues, the "AI-Powered Xinjiang Computing for Chongqing" initiative precisely addresses the fundamental cost challenge of AI development. AI research and operation are veritable computational power gluttons, with electricity costs constituting the bulk of operational expenses.

Rather than expending precious green energy on long-distance transmission to power expensive local data centers, Chongqing has adopted a higher-dimensional strategy: converting watts into bits. This involves leveraging Xinjiang's abundant renewable energy and favorable climate to build large-scale, low-cost computing power facilities directly at the energy source. Here, electricity is transformed into computational power on-site, which is then efficiently delivered to Chongqing users as lightweight digital services via high-speed fiber-optic networks.

This strategic move can be described as a masterstroke. It has endowed Chongqing with a cost-advantage moat in AI development - one that is difficult for other cities to match. This formidable computational power engine serves as the most hardcore and direct "ammunition depot" empowering Chongqing to confidently pursue AI agents as its primary strategic focus.

The third strategic pillar lies in its flagship application - anchoring the ultimate deployment of intelligent connected vehicles (ICVs). The true value of any technology must ultimately be realized through practical application. Chongqing's confidence stems from identifying the perfect flagship carrier for AI agents: intelligent connected new energy vehicles.

As a cornerstone of China's automotive industry, Chongqing understands that a highly intelligent vehicle is, at its core, a sophisticated AI agent operating in the physical world - capable of environmental perception, autonomous decision-making, and real-time action. Chongqing's development of AI agents pursues an unequivocal goal:  to equip its local pillar industries with a powerful "AI brain."

This model - leveraging hardware to drive software development while integrating both domains - has created an industrial closed loop. Chongqing's massive automotive industry cluster provides the most urgent and extensive demand for AI agent technology. In turn, the R&D of AI agents directly enhances the core competitiveness of "Chongqing-made" vehicles. Meanwhile, the massive computing power from the AI-Powered Xinjiang Computing for Chongqing initiative perfectly meets the astronomical computational demands of tasks like autonomous driving model training.

The fourth consideration is the vast market potential, anchored in the transformation needs of Chongqing's manufacturing clusters. The "33618" modern manufacturing cluster system spans electronics, high-end equipment, new materials, and numerous other sectors - a massive market ripe for AI agents to revolutionize and empower.

On traditional production lines, AI agents can serve as "digital foremen," monitoring equipment in real time, optimizing workflows, and flagging risks. In complex supply chain management, these agents autonomously handle scheduling, price comparisons, and order processing. For Chongqing, developing AI agents isn't just about fostering an emerging industry; it's about creating a powerful enabling tool to elevate the efficiency and intelligence of its vast manufacturing base. These diverse application scenarios represent the most fertile testing ground for AI technology.

The fifth consideration is strategic positioning - establishing Chongqing as the "digital heart" of the New International Land-Sea Trade Corridor. As a critical juncture between the Belt and Road Initiative and the Yangtze River Economic Belt, as well as the operational hub of the New International Land-Sea Trade Corridor, Chongqing's unique geographic role demands the management of massive cross-border flows of goods, data, and capital. Only AI agents are capable of overseeing such a complex system.

One of Chongqing's ultimate goals in developing AI agents is to create a "super brain" capable of coordinating and optimizing the entire New International Land-Sea Trade Corridor. Leveraging the computational power from the AI-Powered Xinjiang Computing for Chongqing initiative, this intelligent system will provide smart solutions for this international corridor, transforming it from a mere physical hub into a "digital heart" that exports both intelligence and governance standards.

In summary, Chongqing's AI development strategy demonstrates clear, multi-layered logic - from energy foundations to computing power engines, from flagship applications to vast markets and strategic hubs. This is no hasty attempt to chase trends, but rather a meticulously crafted masterplan where every move counts.

Source: Chongqing Daily