Zhejiang sets course to become innovation hub

On the fourth floor of the Yiwu Global Digital Trade Center, traditional wholesale booths have given way to drone flight-testing zones and embodied artificial intelligence demonstrations.

Meanwhile, in the Tongxiang Economic Development Zone, autonomous vehicles are being tested on simulated routes, preparing for applications in unmanned transport, retail services and emergency response.

These transformations — one shifting from conventional trade displays to immersive, high-tech procurement, and the other transitioning labor-intensive industries toward nearly unmanned processing — reflect more than a simple business upgrade. They signal Zhejiang province's strategic vision for the coming five years.

"We will continue to regard artificial intelligence as a core variable for winning the future, ... and strive to make Zhejiang a hub for innovative AI development," said Liu Jie, governor of Zhejiang.

Speaking at a news conference on Thursday in the provincial capital of Hangzhou, Liu said innovation had become a key growth driver for Zhejiang during the 14th Five-Year Plan (2021-25) period. The province's ratio of R&D spending to GDP rose to 3.3 percent in 2025, and this ratio is expected to surpass 3.5 percent by 2030.

"In recent years, we have maintained the strategic resolve and steadily advanced the 'Digital Zhejiang' initiative, and this has finally led to a surge in artificial intelligence development," the governor said.

Last year, revenue from Zhejiang's core AI industries exceeded 700 billion yuan ($102.52 billion), up 20 percent year-on-year. Large models developed in the province are among the world's top performers, while fast-growing tech firms such as DeepSeek and Unitree Robotics continue to emerge.

Looking ahead to the 15th Five-Year Plan (2026-30) period, Liu said Zhejiang will continue to foster a world-class open-source and innovation ecosystem. The province aims to advance coordinated progress in technology, applications, enterprises and industrial development, aiming to build a leading national hub for AI innovation.

As AI moves from initial development to large-scale deployment, its value is becoming increasingly visible in practical scenarios. For example, at the Zhejiang Tsinghua Institute of Flexible Electronics Technology, humanoid robots are undergoing intensive training in tasks such as household organization and supermarket logistics, with future plans for integration into industrial production lines.

Wu Shaohang, head of the digital economy office at the Zhejiang Provincial Department of Economy and Information Technology, noted that the province has launched "AI+Manufacturing" pilot programs to translate national strategies into practical industrial applications for enterprises.

A provincial policy document was issued in 2025, outlining measures to support the innovative development of AI, expand high-value application scenarios and promote the "AI+" initiative across science, manufacturing, finance, culture, transport, healthcare and education.

Under the new policy, Zhejiang will select up to 10 benchmark projects with national influence each year, offering subsidies that cover up to 30 percent of their investment, capped at 5 million yuan per project.