With island-wide special customs operations of the Hainan Free Trade Port (FTP) officially commencing on December 18, how will Hainan capitalize on its advantages to become a leading space for sci-tech innovation? How will AI empower the FTP's future development? In the 9th installment of Expert Talks on the FTP, our reporter sits down with Fang Ming, Vice President of AI heavyweight iFLYTEK, to find out more.

Setting up operations in Hainan is a major strategic move for iFLYTEK

Wang Xiaotong (W): iFLYTEK established a strategic partnership with Hainan's provincial government back in 2017. What role does the Hainan FTP play in your company’s domestic and global corporate structure?

Fang Ming (F): Hainan plays a critical role as a platform for iFLYTEK's globalization strategy. We have three strategic focuses: R&D, business, and ecosystems. Implementing, expanding, and developing these nationwide may require following a specific order, but in Hainan, we are able to implement all three simultaneously and at full throttle. Hainan is definitely key to our strategic deployment.

W: iFLYTEK's Hainan FTP HQ is about to open. What were the key factors that initially attracted the company to the Sanya Yazhou Bay Science and Technology City's High-tech Zone?

F: Firstly, Yazhou Bay adheres to an extremely high level of overall planning. It's also a key component in the development of the Hainan FTP and has the advantage of being a latecomer. The entire area is now served by smart transportation and an e-government platform, as well as an intelligent security system. Compared with other smart cities nationwide, the level and efficacy of these systems rank among the best. From smart agriculture to national-level deep-sea research, many fields within the zone have a demand for AI, providing us with a rare opportunity to apply our technology to real-world scenarios. This is an opportunity that other companies and we should take note of and capitalize on.

W: How does iFLYTEK's Hainan FTP HQ differ from its other regional HQs?

F: The planning budget and prospects of our Hainan FTP HQ are both really high. Alongside our high-standard HQ, we have also built our Hainan R&D Center and Capital Center in Sanya. Additionally, we have made plans and are moving forward with the development of Hainan's smart industry ecosystem. I will give you an example. We haven't just brought operations and resources to Hainan. We’re also leveraging our leading position in the AI space to attract and support partners working in our industrial ecosystem in establishing their operations here in Sanya. As of the first half of November, we have managed to get 20 of them to set up here, and we’re currently negotiating with dozens more.

W: Does iFLYTEK have any new plans for investment, business expansion, or major product launches in Hainan?

F: We do. The development of the Hainan FTP has opened a new window, benefiting not only iFLYTEK but also all companies participating in global competition and markets. We will seize this rare and historic opportunity. We are further increasing investment in Hainan, not only by expanding the scale of our R&D Center, but also by prioritizing the launch and promotion of products in the pipeline intended for global distribution in Hainan.

W: The Fourth Plenary Session of the 20th CPC Central Committee proposed accelerating the pace of self-reliance and self-strengthening in high-level science and technology to foster the development of new-quality productive forces. Hainan is currently working to transform into an island of scientific and technological innovation. In your opinion, will the Hainan FTP become a preferred destination for corporate science and technology innovation?

F: Not just a preferred destination, but THE destination. Hainan boasts numerous advantages. First are those of FTP policies. Second, it also has an exceptional location. The Hainan FTP is a vital and promising place, not only for China, but for the Asia-Pacific and the world. Another advantage is that people all over China are now talking about the FTP. I believe that the combination of these strengths, along with enterprises' focus and investment in this field (AI), provides an auspicious outlook for Hainan’s high-quality, rapid development.

W: What new opportunities have the Hainan FTP's policy explorations centered on the "secure and orderly flow of data" rendered for the training and application of iFLYTEK’s large language models (LLMs)?

F: There are three key elements of AI: computing power, algorithms, and data. As for iFLYTEK, our own Spark LLM is currently one of the top-performing models both domestically and globally, representing a significant performance improvement. It requires large amounts of high-quality data. Whether this data can be obtained while it's still fresh, authentic, complete, and systematic is crucial to the training, growth, and effectiveness of the model. In terms of cross-border data circulation, Hainan has resource advantages, so iFLYTEK and other leading LLM firms need to be aware of that.

The value of AI is not limited to the digital economy, but more so in how it empowers all industries. In developing its own pillar and advantageous industries, the Hainan FTP must prioritize the development of AI. With the technical support and empowerment of AI, we can achieve twice the results with half the effort. That’s why enterprises and R&D institutions must incorporate AI into their operations, regardless of industry. Going forward, R&D should continue to stand on the shoulders of giants; in this case, the giant is AI.

"AI+FTP" will open entirely new possibilities

W: As you mentioned, AI can be deeply integrated into many of the Hainan FTP's distinctive industries. What do you think the "AI+FTP" development concept can add?

F: The integration of AI into the FTP can open up entirely new possibilities. For example, AI-driven innovation capabilities, when combined with the resources and policies of the FTP, could lead to the creation of entirely new products and services, and even foster products with altogether new competitive advantages, unlike anything we have seen before. AI can empower education, healthcare, and wellness. So, would it be possible for us to explore the creation of entirely new products in the FTP by combining products from different industries?

W: iFLYTEK's products have a wide range of applications in Hainan. In terms of empowering healthcare, education, and smart city construction, what’s something new that your company is exploring?

F: We have already implemented many industrial applications. In biopharmaceuticals and new materials R&D, we have launched in-depth collaborations with leading domestic and international universities and medical research institutes. Significant progress has been made, achieving whole-process coverage from R&D to diagnosis, including pre-diagnosis, treatment, and aftercare. We are also working on AI-empowered wellness. Hainan is a premier destination for wellness retreats. I believe that using AI to upgrade product and service offerings will aid the industry in improving quality and efficiency, opening up a channel for rapid growth.

W: With Hainan set to launch island-wide special customs operations in less than a month, what kind of "Smart FTP" do you envision?

F: I believe that a "Smart FTP" will be one that is brimming with vitality and energy and will also have a greater capacity for sustainable development that can lend fresh hope and a future to the rest of China, as well as its partners in Southeast Asia, the Asia-Pacific region, and around the world. The launch of island-wide special customs operations of the Hainan FTP is exciting news. We particularly look forward to witnessing a vibrant, smart, new FTP that embodies new models and capabilities for global development. We also hope that iFLYTEK and other Chinese enterprises with a dream will take up the mission of contributing to the development of the Hainan FTP.