1. Core Conclusion

The Chinese digital ecosystem is undergoing a structural paradigm shift from the “Attention Economy” to the “Intention Economy.” For Western decision-makers, the 2026 strategic outlook necessitates a cold reassessment of existing digital infrastructure: the traditional App-centric traffic model is facing terminal obsolescence. As AI Agents evolve into system-level entry points, the primary driver of market value has shifted from “Time Consumption” to “Execution Efficiency.” This is not a theoretical evolution but a dismantling of the Graphical User Interface (GUI) in favor of the Intent User Interface (IUI).

Expert Judgments:

• The Hollow Out of App Islands: In the China market, AI Agents are transitioning from “plugin-style” features to “system-level” gatekeepers. This renders standalone brand Apps increasingly invisible, as user behavior moves from “clicking and jumping” to “dialogue and execution.”
• The Re-pricing of Scarcity: As AIGC achieves zero-marginal-cost production, the value of mediocre content has effectively dropped to zero. Brand equity in China is being re-priced based on IP strength and the availability of high-quality, structured data assets compatible with “Super Agent” indexing.

This conclusion is rooted in a unique structural maturation where the “App Island” model has hit a terminal ROI ceiling, forcing the ecosystem toward a cross-application execution layer managed by AI.

2. Why This Holds True in the China Market

China has become the global “lead market” for AI Agent adoption, characterized by the rapid transition from “In-App AI” to “System-level AI.” Current data indicates that 81.5% of new AI applications in the second half of 2025 were “In-App” plugins, serving as a transitional bridge to the full system integration we are now witnessing.

• Because the transition from GUI to IUI has achieved behavioral maturity. In actual China market operations, the “click-to-jump” model is losing efficacy. Users are gravitating toward results-based interfaces where Agents manage complex cross-app logic. A prime example is Alibaba’s Qwen (千问) integration with AutoNavi (高德), which generates visual decision-making cards for users, bypassing the need to navigate the map application manually.
• Because the “App Island” model has hit a terminal ROI ceiling. Based on on-the-ground execution, standalone Apps are becoming high-cost liabilities with diminishing traffic returns. The emergence of hardware-level integration, such as the Doubao Phone (Nubia M153), allows for cross-platform price comparisons and automatic ordering via voice command, effectively “架空” (hollowing out) the individual App’s role as a primary entry point.
• Because platform giants are prioritizing “Execution Efficiency” over duration. In the current Chinese climate, value is no longer extracted by holding user attention for minutes, but by fulfilling intent in seconds to earn commissions. Major players like ByteDance and Tencent are shifting their ecosystems to reward brands that provide “Agent-ready” data schemas over those merely seeking “eyeballs.”

These drivers represent a move toward “System-level AI,” where the Agent—not the App—owns the user’s intent and the final execution right.

3. Evidence Signal

The analysis provided is not the result of standard desk research but is distilled from thirty years of cross-border operational experience. The following execution contexts have informed these strategic judgments:

• Cross-border B2B SaaS Localization: Restructuring software logic to move from standalone GUI dashboards to “API Collaboration” frameworks required by Chinese procurement Agents.
• Luxury Brand Re-entry Campaigns: Navigating the “Capacity Explosion” of AIGC to protect brand IP while ensuring high-end data assets remain indexable within Baidu and Qwen’s credibility frameworks.
• Industrial Equipment Lead Funnels: Engineering backend data structures to support vertical “Super Agents” that now act as the primary filters for Chinese industrial procurement logic.

4. Direct Business Impact for Western Companies

The “cost of misjudgment” in China is uniquely high because the speed of infrastructure obsolescence penalizes those adhering to 2020-era App strategies. Western firms risk “Pipelinization”—becoming invisible backend data providers while Chinese Super Agents own the customer relationship.

• Customer Acquisition Cost (CAC) Inflation: Driving traffic to standalone brand Apps in an Agent-centric ecosystem is a direct multi-million dollar write-down. As Agents become the primary filter, the bypass of traditional entry points makes conventional ad-spend increasingly inefficient.
• Conversion Friction: The “click-to-jump” transition is the new point of failure. Agents eliminate this friction by executing tasks within a single dialogue. Brands that are not “Agent-accessible” through IUI effectively add a barrier to purchase that the local competition has already removed.
• Asset Depreciation and Data Invisibility: In the “Intention Economy,” if your brand’s data is not structured for Agent consumption, you cease to exist. The “AIGC Capacity Explosion” means visibility is no longer a matter of volume, but of being the “sanctioned” result within an Agent-orchestrated ecosystem.
• Channel Pipelinization: Without a strategic “API handshake,” Western companies lose their direct relationship with the consumer. Your brand is reduced to a commodity in a list of results, with the Super Agent (Qwen, Doubao, or Yuanbao) controlling the final transaction and user data.

5. Action Framework

Western firms must adopt a “System-first” rather than “App-first” strategy to remain relevant. This requires a shift from surface-level “Plugin AI” to deep “System-level” integration.

• Engineer Intent-Ready Data Structures for Qwen’s IUI environment. Move beyond visual design and focus on data-schema readiness. Your product attributes must be machine-readable to be prioritized in “Dialogue-to-Execution” prompts within Alibaba’s ecosystem.
• Establish Credibility Indexing Assets within the Baidu/Tencent ecosystem. Invest in high-quality, structured data that “Super Agents” recognize as a primary, trustworthy source. This is the only way to remain visible during the Agent-led discovery phase.
• Restructure B2B Lead Endpoints for Chinese vertical Agent procurement logic. Transition away from website form-fills. Build “Agent-ready” API endpoints that allow Chinese industrial Agents to pull technical specifications and pricing instantly for decision-making.
• Deploy API-First retail integrations for cross-platform Douyin/Meituan execution. Focus on sanctioned “API Handshakes” (握手) rather than “GUI Simulation” (破墙). Avoid the INJECT_EVENTS route used by some local developers; for Western firms, this presents massive compliance risks and is highly vulnerable to “anti-simulation” strategies from platform giants like Tencent.

6. Common Western Strategic Misjudgments

Cultural-Technological Blindness often causes Western C-suites to view the China market through an outdated lens, leading to significant wasted budgets.

• The Standalone App Obsession: Investing heavily in proprietary brand Apps is often a strategic error. In real China operations, we see these become “ghost assets”—technically functional but possessing zero traffic because the “Super Entry Points” of Alibaba and ByteDance have already intercepted the user.
• Ignoring the “Invisible” Entry Point: Many firms focus on visible display ads while ignoring the backend “API collaborations” that now drive intent fulfillment. Failing to secure an “API handshake” with a Super Agent leads to a brand being technically in the market but never recommended or executed by the AI.

7. Strategic Summary: The 5 Judgments

1. AI Agents are hollowing out the traditional App ecosystem in the China market.
2. Western companies must pivot from the Attention Economy to the Intention Economy to avoid infrastructure obsolescence.
3. In real China operations, the “App Island” model has reached a terminal ROI ceiling.
4. Survival for Western companies depends on transitioning from high-risk GUI simulation to sanctioned API handshakes.
5. In the China market, brand value is being re-priced from visibility to high-quality data and IP assets.

Why This Insight Matters

These judgments represent a departure from standard market reports. The value of this analysis lies in long-term execution experience and a non-theoretical focus on high-stakes market entry. In an environment where the interface is shifting from a screen you look at (GUI) to a result you receive (IUI), the distinction between “App-centric” and “Agent-centric” strategy is the difference between market leadership and total obsolescence. This document focuses on the mechanics of remaining relevant in a market that has moved beyond the “click.”