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
💰💰💰 HighWhy 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
💰💰💰 HighWhy 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
💰💰 MediumWhy 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-MediumWhy 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-MediumWhy 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
China improves investment mechanism to advance rural revitalization
China has issued a plan to improve investment mechanisms for rural revitalization, jointly released by the Ministry of Agriculture and Rural Affairs, the NDRC, the People's Bank of China, and other agencies. The plan aims to increase fiscal, financial, and social capital support for agriculture and rural areas, setting a 2030 goal for a balanced and efficient investment structure. It emphasizes government funding leadership and coordinated use of bonds, loans, insurance, subsidies, and pricing policies. This is a broad policy framework rather than an immediately enforceable rule, signaling future investment opportunities rather than direct obligations.
China taps AI for tax system modernization drive
China’s State Taxation Administration is expanding its annual Spring Breeze tax service campaign with 16 measures that use AI large models to improve tax filing, taxpayer support, and compliance. The measures include AI assistants, 24/7 chatbots, expanded IIT auto-filling, bilingual services for foreign enterprises and expatriates, paperless departure tax refunds, and early risk alerts. The goal is to cut waiting times, simplify procedures, and shift supervision toward proactive compliance. Nationwide rollout is underway, with local pilots in Shenzhen, Zhaoqing, Hainan, and other regions.
Finland, Saudi Arabia guest countries of honor at 26th China int'l investment, trade fair
China's Ministry of Commerce announced that the 26th China International Fair for Investment and Trade will take place September 8–11 in Xiamen, marking the first time the fair has named two guest countries of honor: Finland and Saudi Arabia. The event aims to promote two-way investment through themed exhibitions and specialized zones, highlighting China's growing role as an investment hub.
China's central bank adds 8 banks as digital yuan operators
The People's Bank of China has added eight banks to its list of authorized digital yuan operators, raising the total to 30. The move is designed to broaden the inclusiveness of digital yuan services and support regional SMEs and cross-border trade. The newly added banks will begin services once their technical and operational preparations are complete.
Q: On June 29, China and the EU held the first meeting of the China-EU Trade and Investment Consultation (TIC), and preliminarily agreed to hold the second meeting of the TIC this autumn. We have noted that the two sides have maintained int...
China and the EU held their first Trade and Investment Consultation (TIC) meeting on June 29 and plan a second meeting this autumn. Officials from both sides are intensifying communication and working-level talks to resolve trade concerns and maintain a stable, balanced trading partnership. No new trade rules or enforcement actions were announced; the statement is a status update on ongoing diplomatic negotiations.
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.
Guides & Tools
China Business License Application
Complete 2026 guide to obtaining your business license in China.
Registered Capital Requirements
Minimum capital requirements and contribution timelines explained.
Shanghai FTZ Company Registration
Complete guide to registering in Shanghai Free Trade Zone.
China VAT Rates Explained
Value-added tax rates, exemptions, and refund procedures.