Lunar New Year intersects with AI

Summary

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)

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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.

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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)

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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)

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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

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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.

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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.

Transcript

[A]

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[C]

Chinese New Year Shopping Gets an AI Makeover Live from the uk, this is the Marketplace Morning report from the BBC World Service. Hello, I'm Nick Qureshi. Today marks the start of the Lunar New Year, a major celebration in China and other parts of Asia, including South Korea and Vietnam with 2026 known as the Year of the Fire Horse. As with many traditional festivals around the world, it's become a major retail event as well as a cultural phenomen. This year, China's artificial intelligence companies have been splashing the cash in what's being called the Lunar New Year AI War. Duncan Clark is an author and an expert on China's retail and tech sector. Duncan, hi.

[D]

Hi Nick.

[C]

So just how important is today for Chinese retailers?

[D]

This is a very important day because it's the evening and the day, the first few days of the Chinese New Year and traditionally this is the battleground, particularly for technology companies that are trying to promote their latest offerings. If you remember a year ago, we saw the deep seek moment when China shocked not only China, but the world with this advanced AI product that came out. Now this year, I would say 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. In the next few days.

[C]

I want to focus on Alibaba and this new AI model, QIN 3.5. What are the selling points according to Alibaba, given the fact that they tough competition, especially from ByteDance.

[D]

Absolutely. So Alibaba has been around quite a long time, so it's not a new company compared to, say, ByteDance, but it is completely dominant in E commerce and very active in other areas too, from entertainment to travel to payments. What AI and Quinn represents for them is the opportunity to bring all of their products into sort of one bucket. And this is Quinn. So that consumers don't need to know which site to go to and which category. 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. And at the moment they're promoting, over the last few days, they promoted free cups of milk tea delivered to your house, you know, immediately, with this massive logistics network. So AI for them is an opportunity to bring all of their ecosystem together and for consumers and to grab the consumers before competitors get them.

[C]

And this market really is a fierce battleground, isn't.

[A]

Is?

[D]

I mean, you know, actually one can argue that, you know, the US is a battleground for the sort of advanced, what we call the LLMs, these large language models, and China has that too. But I think China is showing the way forward in how you disperse technology. You know, how you get consumers to push themselves into new areas that they've never tried before, using things like commerce to completely overturn the traditional ways that we would, you know, look for something, search online, make a decision. You're just compressing that into almost a. Your intent becomes the execution by AI. It just happens within seconds.

[C]

In another development, we understand that China is summoning Alibaba and other firms over their pricing practices. What can we make of that?

[D]

Well, overall, the Chinese government is facing right now a struggle to reverse the decline in prices. So in the west, we're sort of used to price spikes and inflation. China's the opposite. Right now, they're looking to eliminate excessive competition because the economy, the consumer economy in China has not really fully recovered from the COVID time and also the property crash that's going on here. So any excessive competition, as the government sees it, is not helpful. If it brings down prices, obviously that can be popular with consumers. But the Chinese government is policing excessive subsidies. So we see that in things like meal deliveries or any kind of products, the government will step in and force companies to suspend their promotions and so on. But the trend is it's such a competitive market that these, these companies are going to do everything they can to grab customers, particularly in this age of AI.

[C]

Duncan Clark, very good to talk to you on Marketplace. Thanks for your time.

[D]

Thanks, Nick.

[C]

Okay, let's do some numbers. Stock markets in the Middle east slipped in early trade with investors cautious of US Iran nuclear talks. Oil prices cooled too, with the benchmark Brent crude easing to below $69 a barrel. And in India, markets climbed on news of a collaboration between software services exporter Infosys and Anthropic. India's Sensex index up 0.3%. Now a major global artificial intelligence conference has opened in the Indian capital, Delhi. Chief executives of US tech giants like Alphabet and OpenAI are attending, along with senior politicians from around the world. And we' already seeing investment announcement. India's Adani Group says it will invest $100 billion by 2035 to develop what it calls hyperscale AI ready data centers. It's a boost to Prime Minister Narendra Modi's plans to make India a global AI hub. Among those at the conference in Delhi is President Emmanuel Macron of France. And it's not the only reason he's in India. The two countries are due to sign a major deal for India to buy over 100 French made Rafale jet fighters worth $35 billion. Here's the BBC's Peter Hyatt.

[E]

With Donald Trump upending global trade arrangements. France and India are both seeking to diversify their trading partners. Last month, India and the European Union signed a landmark free trade agreement. India has agreed to buy dozens more Rafale fighter jets from France, further reducing its traditional reliance on Russia for military equipment. China's growing assertiveness in the region is also expected to be on the agenda when Mr. Macron meets the Indian Prime Minister Narendra Modi.

[C]

Peter Hyatt there. Let's turn now to Cuba. Welcome to the 25th annual Festival de Habano, a true celebration of Cuban cigars and Cuban culture. That's the launch of last year's Festival de Habano, the most important cigar festival in the Cuban calendar. It brings cigar aficionados to the island from across the world, generating precious income for the Caribbean nation. Not so this year. The festival has been cancelled due to a fuel crisis. The US has tightened its blockades on Cuba and prevent reaching the island from Cuba's ally, Venezuela. It's all part of the long running feud between Washington and Havana. Here's the BBC's Will Grant.

[F]

In essence, ever since the US economic embargo was imposed on Cuba some 65 years ago, the policy goal by Washington has been broadly the same towards the communist run island, that of regime change. Apart from occasional moments of rapprochement or improved ties. The most clear of Those came in 2014, when then President Obama announced a thaw in relations between Washington and Havana and even visited the island himself, the first sitting president to do so.

[A]

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