Hangzhou, a burgeoning tech hub in China, is home to major companies like Alibaba and DeepSeek, which have recently garnered attention for their affordable open-source AI models.

Liangzhu, a suburb of Hangzhou, is emerging as a significant rival to Silicon Valley in the artificial intelligence sector, according to a report by The New York Times.

This suburb has become a vibrant center for aspiring tech entrepreneurs, attracting talent from major cities like Beijing and Shanghai due to its affordable living and proximity to leading tech firms.

The local government has been supporting startups in Hangzhou for over a decade through subsidies and tax breaks, resulting in the emergence of hundreds of tech companies and attracting talent from prestigious institutions like Zhejiang University.

Liangzhu has transformed into a hub for tech startups, with events frequently drawing aspiring entrepreneurs who focus on AI and engage in discussions about the technology.

On a sunny Saturday, a gathering of aspiring tech startup founders in Liangzhu showcased the area's vibrant entrepreneurial spirit, reminiscent of Silicon Valley.

Despite facing challenges, many entrepreneurs in Liangzhu are determined to pursue their startup dreams, reflecting a growing trend of entrepreneurial spirit among China's youth.

However, founders express difficulties in attracting foreign investment due to government connections and increased scrutiny from international investors, particularly concerning national security.

Entrepreneurs often grapple with the choice between accepting government funding, which may limit their growth potential, or seeking foreign venture capital, creating tension in their business strategies.

Access to advanced computer chips remains a significant concern for local companies, as U.S. export controls on high-performance semiconductors challenge the tech industry in China.

There is ongoing uncertainty regarding the capability of domestic chip production to meet the demands of AI development in China, raising questions about the country's path to chip independence.

Many entrepreneurs in Liangzhu are innovating in AI applications, such as personal digital companions and productivity tools, aimed at enhancing daily life and mental well-being.