China Already Has Its Next Move Ready in the AI War: “Token Factories” with Its Own Hardware

China is promoting “token factories” as a new AI industry model built around large-scale domestic compute.

Projects in Wuxi and Hubei are using Huawei Ascend and other local infrastructure to supply AI capacity measured in tokens.

The strategy aims to reduce reliance on foreign AI hardware and expand China’s homegrown compute supply for models and agents.