A view of the West Lake in Hangzhou, Zhejiang Province. /VCG

In the heart of eastern China, Hangzhou, the capital of Zhejiang Province, has emerged as a thriving tech hub, attracting global attention. Known for its rich history and picturesque West Lake, the city is quickly being recognized for something new: a booming startup scene. Companies like Game Science, DeepSeek, and Unitree Robotics have helped Hangzhou earn its reputation as the Chinese Silicon Valley, blending innovation with local charm — and yes, exceptional tea.

Hangzhou 101

Hangzhou, the capital city of Zhejiang Province in eastern China, is the political, economic, cultural, and scientific center of the region. It is located in the southeastern coastal area of China. By the end of 2023, the city had a permanent population of 12.52 million, with a land area of about 16,900 square kilometers, equivalent to over 12 times the area of Los Angeles.

As a popular tourist city, Hangzhou receives a large number of visitors every year. Whether it's the West Lake, renowned as a paradise on earth, the Lingyin Temple, one of the oldest Buddhist temples in Hangzhou, the Grand Canal, the longest man-made canal in the world, or the Qiantang River, famous for its tidal waves, all these attractions are injecting new vitality into Hangzhou's cultural and tourism industry.

According to official data, during the recent Spring Festival holiday, as of February 4th, Hangzhou's scenic spots had received a total of 13.56 million visitors, a 0.4 percent increase compared to last year. Among them, the city also welcomed 15,974 overseas visitors, generating a total tourism revenue of more than 10 billion yuan ($1.4 billion), a 1.54 percent increase compared to last year.

The 'Six Little Dragons' in Hangzhou

Hangzhou's rise as a tech powerhouse is no accident. It's the result of a unique combination of talent, government support, and an environment that encourages creativity and entrepreneurship. The city has been home to the "Six Little Dragons" — a group of six innovative companies making waves in the tech world. These  include Yun Shen Chu Technology, Unitree Robotics, DeepSeek, Game Science, Qunhe Technology, and BrainCo. Despite being relatively young, these companies have made significant strides in fields like artificial intelligence, robotics, gaming, and human-computer interfaces.

One of the most notable achievements is "Black Myth: Wukong," developed by Game Science. This video game, which introduced traditional Chinese cultural elements to the global gaming market, became a massive success, generating over $1 billion in revenue. Its recognition at The Game Awards 2024 — winning "Best Action Game" and "Players' Voice" — marked a major milestone for Chinese game developers.

DeepSeek, a rising star in artificial intelligence, has garnered global attention with its AI model, DeepSeek-V3. By efficiently training its model with low-cost computing resources, DeepSeek has showcased the power of "Chinese speed" in AI development. The company's approach has made AI more accessible, transparent, and energy-efficient.

Unitree Robotics, meanwhile, has introduced its B2-W robotic dog, which has captivated international attention for its ability to navigate rough terrain and assist in emergency rescues. With a commanding 70 percent share of the global quadruped robot market, Unitree is setting new standards in robotics.

Other companies — Yun Shen Chu Technology, BrainCo, and Qunhe Technology— are also making significant strides. Yun Shen Chu's robots are now being used in Singapore for power tunnel inspections, while BrainCo is leading the way in brain-computer interface technology, helping people with disabilities. Qunhe's innovative cloud computing solutions and its 3D space design platform, Kujiale, are transforming the AI and digital content industries.

What's Behind Their Success?

The success of these companies isn't just about innovation; it's about the ecosystem that has nurtured them. Hangzhou's government has played a crucial role by offering financial incentives, including tax breaks for startups and low-interest loans to help tech companies with their research and development phases. For instance, Hangzhou allocates more than 15 percent of the city's fiscal revenue to technological investments each year; ensuring resources are available for innovation.

Beyond finances, Hangzhou's infrastructure also supports tech companies. The city has established innovation parks and incubators like the Hangzhou Future Sci-Tech City, where startups can benefit from rent-free spaces and a collaborative environment. This allows companies to focus on growth without the heavy burden of operational costs.

A Culture of Patience and Support

What sets Hangzhou apart from other cities is its unique approach to supporting innovation. The city's policy is simple: provide the resources and support, and let the companies thrive. A telling example is when Game Science needed additional office space during the development of "Black Myth: Wukong." The city not only secured space but kept two buildings vacant for three years, showing their commitment to fostering growth. Similarly, when Unitree Robotics needed fast-track patent services, Hangzhou introduced specialized support to help them protect their intellectual property.

The city's government services are streamlined and efficient, with a focus on transparency and minimal interference, creating an environment where businesses can focus solely on their development.

The story of Hangzhou is just beginning, and the tech world is watching closely. With its combination of talent, government support, and a culture of patience and innovation, Hangzhou is well on its way to becoming one of the world's leading tech hubs.