CPG
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Technology, AI & Software in China

Build R&D centers, hire AI/software engineers, access China's tech ecosystem. You need top talent, tech parks, and government support for innovation.

Best Cities for Technology, AI & Software

Top destinations matched to your industry, with specific incentives and cost profiles.

#1 Shenzhen

💰💰💰 High
Guangdong

Why this city:

Hardware + software capital. Huawei, Tencent, DJI ecosystem. World's best prototyping supply chain. 1-3% FDI cash incentives for large investments. Proximity to HK for capital and legal.

Key incentives:

1-3% cash incentive on FDI >$50M; Nanshan startup grants; HK proximity

#2 Beijing

💰💰💰 High
Beijing

Why this city:

AI research capital - Tsinghua & Peking University. Zhongguancun (China's Silicon Valley). Government relations + policy talent. Strong in cybersecurity, aerospace, autonomous driving.

Key incentives:

Zhongguancun Science Park; AI/digital economy incentives

#3 Hangzhou

💰💰 Medium
Zhejiang

Why this city:

Alibaba/Ant ecosystem. Digital Economy Zone with dedicated 15% CIT rate. RMB 1M cloud credits for new entrants. Best city for e-commerce, cloud, and fintech.

Key incentives:

Digital Economy Zone: 15% CIT; cloud credits ¥1M; innovation vouchers

#4 Hefei

💰 Low-Medium
Anhui

Why this city:

Quantum computing + AI hub. USTC (top 3 STEM university). NIO, BOE, iFlytek headquarters. Lowest costs among tech hubs. Fastest-growing tech cluster in China.

Key incentives:

Quantum National Lab; EV supply chain subsidies; USTC tech transfer

#5 Chengdu

💰 Low-Medium
Sichuan

Why this city:

Largest software outsourcing base in western China. Gaming industry cluster (Tencent, NetEase studios). Tianfu Software Park with 600+ companies. 15% CIT for western region.

Key incentives:

15% CIT western region; Tianfu New Area; software park rent subsidies

Relevant Policies

Industry 🤖 AI Summary Active Policy

China to conduct 500-bln-yuan MLF operation to sustain banking liquidity

The People's Bank of China (PBOC) announced a 500 billion yuan (about $73.6 billion) one-year Medium-term Lending Facility (MLF) operation to maintain ample liquidity in the banking system. The operation uses variable-rate tenders with fixed quantity and a multiple-price auction. With 400 billion yuan maturing this month, the net injection is 100 billion yuan, supporting bank lending and economic stability.

July 26, 2026
Trade 🤖 AI Summary Active Policy

Fourth Meeting of the Sub-Committee on Trade and Investment of the China-Thailand Joint Economic and Trade Commission Held in Bangkok

China and Thailand held the fourth meeting of their Sub-Committee on Trade and Investment in Bangkok on July 9, 2026, co-chaired by Vice Minister of Commerce Yan Dong and Thailand's Vice Minister for Commerce Piyanuch Wuttisorn. The two sides discussed deepening bilateral trade and investment cooperation, with Thailand seeking enhanced collaboration in agricultural trade, e-commerce, and SMEs, and expressed readiness to improve the business environment for Chinese firms investing in Thailand. This meeting reinforces ongoing economic ties and signals continued market access and trade facilitation between the two countries.

July 26, 2026
Incentives Active Policy

Hainan FTP — Zero-Tariff Expanded + Offshore Headquarters Incentive 2.0

Hainan Free Trade Port expanded its zero-tariff policy to cover all production equipment and raw materials (previously limited to select categories). A new "Offshore Headquarters 2.0" incentive offers qualified multinational regional headquarters 5% effective CIT rate and full foreign exchange convertibility within the FTP.

May 1, 2026
Technology Active Policy

Shanghai Lingang — Cross-Border Data Transfer Green Channel

Shanghai's Lingang Special Area launched a "green channel" for cross-border data transfers, allowing qualified enterprises to export operational data without the standard security assessment. This is specifically designed for multinational R&D centers, financial data processing, and global supply chain management systems operating from Lingang.

April 25, 2026
Technology Active Policy

Zhejiang — Digital Economy Foreign Investment Zone

Zhejiang province designated the Hangzhou-Ningbo corridor as a "Digital Economy Foreign Investment Zone," offering streamlined company registration, dedicated data infrastructure, and tax incentives for foreign technology companies establishing R&D centers or regional headquarters in cloud computing, AI, e-commerce, and fintech.

February 20, 2026
Incentives Active Policy

Shanghai Foreign-Invested Enterprise Reinvestment Measures

Shanghai introduced a package of measures in December 2025 to encourage foreign-invested enterprises to reinvest profits and expand operations. The measures include flexible land-use policies, streamlined foreign exchange registration, simplified food retail licensing, and expanded Qualified Foreign Limited Partnership (QFLP) pathways.

December 26, 2025
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