Hangzhou is evolving from a picturesque West Lake paradise into China's tech metropolis. Six up-and-coming start-ups - the "little dragons" - are propelling the city to the top of the global innovation map. A look at China's new technology hotspot.
The six little dragons of Hangzhou are emblematic of more than a hundred other tech hotspots in China.
(Image: Dall-E / AI-generated)
Hangzhou, the city in eastern China, south of Shanghai, is currently experiencing something of a technological renaissance. The city, once known only for its beautiful "West Lake" and its "Longjing" tea plantations and Buddhist pagodas, is rapidly joining the list of leading innovation centers in the People's Republic. Insiders know Hangzhou as the home of Alibaba, the internet platform founded by Jack Ma. However, the city's image is now being shaped by six up-and-coming start-ups that have been collectively nicknamed "The Six Little Dragons of Hangzhou" in China. Among others, China's Premier Li Qiang recently used this expression during a keynote speech at the China Development Forum (CDF) in Beijing.
From AI to robots to video games
In addition to DeepSeek, these six dragons include robotics manufacturer Unitree Robotics, which recently caused a stir with its extremely agile robot dog "B2-W". The AI-controlled animal can run like a chamois over rough terrain in the mountains and can be used for rescue missions there. There is also robotics manufacturer Yun Shen Chu, whose robots are already inspecting infrastructure tunnels in Singapore. There is BrainCo with its world-leading "brain-computer interface" technology, which can help people with disabilities, among other things. There is also Qunhe with its innovative cloud products and 3D platform. And then there is Game Science, which has made billions in sales in a short space of time with its creative video game "The Black Myth: Wukong".
These six companies are just a few examples of many. They show how a wave of Chinese tech start-ups are confidently positioning themselves at the forefront of the race for the technologies of the future. DeepSeek, the AI startup that has received global attention for its DeepSeek-R1 large-scale language model (LLM), which can compete with ChatGPT and other AI agents from the US and elsewhere despite lower development costs, has undoubtedly generated the most headlines recently.
His founder Liang Wenfeng has quickly acquired a kind of rock star status in China, reminiscent of Steve Jobs. He was also recently received demonstratively by President Xi Jinping in Beijing. When Apple CEO Jim Cook visited China in March, he traveled from Beijing to Hangzhou and paid his respects to "the next generation of developers" (quote Jim Cook) with a meeting at Zhejiang University. According to analysts, DeepSeek's language models are characterized by a remarkable ability to continue learning on their own. The success has made waves in Silicon Valley and Washington alike. The share prices of almost all Chinese technology companies have risen significantly since then.
The eagle leaves the nest
The technological spring in Hangzhou is not a spontaneous or accidental development. Support from state funding programs and tax incentives from the local government have patiently nurtured the growth of start-ups for years. Launched by the Hangzhou city government in 2010, "Project Eagle" specifically promotes promising start-ups in the fields of science and technology. Among other things, it connects them with incubators, investors and research institutes.
Some district governments in Hangzhou, such as that of Binjiang district, where Unitree is based, spend around 15 percent of their total annual budget on promoting high-tech companies, Chinese broadcaster CCTV reported this February. The city of Hangzhou's "Future Industries Development Plan (2025 to 2026)" prioritizes future technologies such as artificial intelligence, humanoid robots and synthetic biology. With such strategic initiatives, Hangzhou aims to establish itself as a leading national center for AI and the converging industries by 2026.
Date: 08.12.2025
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Infrastructure is a key to success
Hangzhou also boasts an excellent infrastructure. The train station, the airport, the road network—everything is ultra-modern, world-class. Tech-savvy young people returning from universities in the USA or Europe feel at home here. The dynamism of the city is infectious. The "Six Little Dragons", the new pride of the Chinese tech community, and their promoters in the city authorities illustrate the very China-specific symbiosis of private entrepreneurship, strategic support from the state and universities that make Chinese technology clusters so fertile for innovation and start-ups. There are now more than a hundred of these clusters throughout the country.
Anyone who believes that China's development can still be kept in check by technology boycotts and "chip wars" should probably take a look around Hangzhou. There they might come to the realization that this train has just left the station. (sb)