XChange TEC plans U.S. AI push, to wind down China operations

XChange TEC.INC (Nasdaq: XHG), a technology company currently operating insurance agency and insurance technology businesses in China, announced a plan to expand into artificial intelligence in the United States while gradually reducing its mainland China operations.

The company's board of directors approved the initiative, which calls for an investment of between $5 million and $10 million in the U.S. market over the next several months, contingent on financing availability, market conditions, and the identification of suitable opportunities.

The planned U.S. investment is intended to support AI technology development in areas such as intelligent automation and data analytics, talent acquisition, strategic partnerships with U.S.-based AI companies and research institutions, and the establishment of operational and regulatory infrastructure.

XChange said it is evaluating both organic development and strategic acquisition opportunities as part of the expansion. The company also stated it plans to wind down its mainland China operations in an orderly manner over the coming months, with consideration for stakeholders and applicable regulatory requirements.

Currently, XChange operates a PRC-licensed insurance agency with nationwide reach in China, as well as an insurance technology business that includes a SaaS platform connecting consumers and underwriting support.

The announcement was made via a press release issued from Shanghai.

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