Marketplace Morning Report — "Lunar New Year intersects with AI"

Date: February 17, 2026
Host: Nick Qureshi (BBC World Service for Marketplace)
Featured Guest: Duncan Clark (author and expert on China’s retail and tech sector)

Episode Overview

This episode unpacks how the Lunar New Year, one of Asia’s largest cultural celebrations, is being radically transformed by the integration of artificial intelligence (AI) in China’s retail sector. The discussion centers on how tech giants like Alibaba are leveraging AI during this critical shopping period, the competitive landscape among Chinese AI companies, and how government oversight is shaping the market’s evolution. The episode also briefly touches on global markets news, major AI investments in India, and geo-political trade shifts.

Key Discussion Points & Insights

1. Lunar New Year as an AI-Driven Shopping Event (01:01 – 02:20)

• Lunar New Year is both a cultural and economic milestone, especially in China, South Korea, and Vietnam.
• AI’s prominent role: 2026 sees what’s called the "Lunar New Year AI War," with tech companies battling for consumer attention using advanced AI platforms.
• Duncan Clark: “It’s the year of AI merging with consumption. So it’s becoming much more of a shopping-driven experience as well. And we’re seeing billions of dollars are being poured in to compete for customers.” (01:47)

2. Alibaba’s Strategy: AI Integration with QIN 3.5 (02:20 – 03:23)

• Alibaba’s new AI model, QIN 3.5, aims to unify its vast suite of services—from e-commerce to payments—through a conversational AI interface.
• Consumer convenience: “Literally, they’re making chat, shopping. So if you just in your AI prompt, say, I’d like a cup of tea, they will deliver it.” (02:54)
  • Example: AI-driven promotions such as delivering free milk tea to homes using Alibaba’s logistics.
• Goal: Build ecosystem loyalty and retain consumers before competitors like ByteDance can lure them away.

3. The Nature of China’s AI Battleground (03:23 – 04:02)

• Competition is fierce: Both domestic and global markets are seeing rapid AI advancements.
• “Intent becomes the execution by AI.” Consumers move from intent to acquisition seamlessly—AI compresses the traditional steps of online shopping.
• Duncan Clark: “You’re just compressing that into almost a... your intent becomes the execution by AI. It just happens within seconds.” (03:48)

4. Regulatory Pressures: China’s Government Steps In (04:02 – 05:07)

• The Chinese government, counter to Western concerns about inflation, is wary of excessive competition causing price declines.
• Government intervention: Authorities have been summoning companies like Alibaba over pricing practices and policing subsidies/promotions.
• Economic context: China’s consumer economy is still recovering from COVID and a property slump.
• Duncan Clark: “Any excessive competition, as the government sees it, is not helpful. If it brings down prices, that can be popular with consumers. But the Chinese government is policing excessive subsidies.” (04:27)

5. Global Markets & AI Developments (05:11 – 06:48)

• Market updates: Middle Eastern stocks down on US-Iran nuclear talks; oil prices fall.
• India’s AI ambitions: Infosys partners with Anthropic; Adani Group to invest $100B in “AI-ready” data centers. Major AI conference in Delhi attracts US tech leaders and politicians.
• France-India trade: India to buy $35B in French-made Rafale jets, signaling a shift away from Russian defense reliance.
  • Peter Hyatt (BBC): “France and India are both seeking to diversify their trading partners... China’s growing assertiveness in the region is also expected to be on the agenda...” (06:23 – 06:48)

6. Cuba’s Cigar Festival Cancelled Amid Ongoing Crisis (06:48 – 08:05)

• Festival de Habano cancelled due to a fuel crisis caused by renewed US blockade pressures.
• Historical context: US embargo aimed at “regime change” remains a barrier for Cuba, despite brief periods of improved relations.
  • Will Grant (BBC): “Ever since the US economic embargo was imposed on Cuba some 65 years ago, the policy goal... has been broadly the same towards the communist run island, that of regime change.” (07:29)

Notable Quotes & Memorable Moments

• Duncan Clark on AI transforming Chinese retail:
  “It’s the year of AI merging with consumption... this is becoming much more of a shopping-driven experience as well.” (01:48)

• On Alibaba’s consumer experience via QIN 3.5:
  “Literally, they’re making chat, shopping... if you just in your AI prompt, say, I’d like a cup of tea, they will deliver it.” (02:54)

• AI compresses consumer decision-making:
  “Your intent becomes the execution by AI. It just happens within seconds.” (03:48)

• Government concerns over price wars in China:
  “Any excessive competition, as the government sees it, is not helpful... but the Chinese government is policing excessive subsidies.” (04:27)

Timestamps for Key Segments

• [01:01] — Lunar New Year and AI’s transformative role
• [02:20] — Alibaba’s QIN 3.5 and chat-based shopping experience
• [03:23] — The competitive AI landscape in China
• [04:02] — Government regulatory intervention in pricing
• [05:11] — Global markets and India’s AI ambitions
• [06:23] — France-India Rafale jet deal and shifting trade alliances
• [06:48] — Cuba’s cancelled cigar festival and the ongoing embargo

Tone, Language & Flow

The episode maintains a brisk, informative tone, reflecting both the urgency of business news and the excitement around technological change in Asia. The conversation with Duncan Clark balances expert insight with practical examples—making the rapid evolution of AI in Chinese retail accessible even to listeners unfamiliar with the topic—while news segments skillfully weave in global economic context.

Summary

This episode offers a concise yet vivid look at how Lunar New Year celebrations in China are being reshaped by AI, with major implications for both consumers and tech giants. The discussion highlights both the innovation and the regulatory balancing act required as China’s economy adapts post-COVID, alongside a global snapshot of AI investment, trade developments, and geopolitical tensions.