Shantou, a traditional coastal city in southern China, best known for its historic architecture and beef meatballs, is emerging as an unlikely player in the global AI economy.
Instead of exporting physical goods, the city is developing a new business: exporting AI tokens, the units of data processed by large language models.
According to Cao Anding, deputy director of the Administrative Committee of Shantou Pilot Zone for Economic and Cultural Cooperation with Overseas Chinese, daily token usage in the city has surged from 100 million in April to nearly 200 billion, with services reaching more than 50 countries.
But why Shantou?
The answer lies in an unexpected combination of advantages. International submarine cables laid decades ago connect the city to Southeast Asia, while abundant offshore wind resources offer potential cost advantages for energy-intensive computing centers.
Shantou also benefits from its extensive overseas Chinese network, which helps local AI businesses find customers and navigate cross-border data regulations.
Local companies say competitive pricing is helping Chinese AI services gain traction overseas.
Cao estimates that global demand for Shantou's tokens could reach four trillion a day, while current supply meets just 5 percent of that demand.
In this episode of China Xplained, we explore how an ancient trading city is reinventing itself for the AI age.
Reporter | Xie Hongzhou
Cameraman | Deng Yingheng
Video | Deng Yingheng
Poster | Xie Hongzhou
