In the last 10 years, Shanghai’s tech and startup scenes, often going hand-in-hand, have simply exploded.
As of 2018, China’s most cosmopolitan city has already surpassed other international tech hubs such as Tokyo, Beijing, London and New York, by number of tech startups. The city is closing in on it’s biggest tech rival, the mother of tech herself: Silicon Valley.
In fact, Shanghai is currently one of the biggest and most active regions for entrepreneurship in the entire world.
Over 700,000 new business were set up in Shanghai in the first 5 months of 2017 alone. That’s a whopping 20% increase from the year before. And many of these startups are tech related.
KPMG’s Global Technology Innovation report, which surveys over 800 technology industry and business leaders internationally on areas of tech innovation, leadership and market trends, announced Shanghai’s tech scene is leading in growth.
The 2018 annual KPMG report stated that they expect Shanghai to become the next Silicon Valley in the next four years. The report found that while the most “tech breakthroughs” in the world still come from the U.S., accounting for 26%, Shanghai is just inches behind with 25%. Meanwhile, things in Silicon Valley are starting to slow down while Shanghai is still picking up pace. The odds are leaning in Shanghai’s favor.
In particular, Shanghai has been a hub for mobile App development, such as Bon App and BottlesOx, and high-tech industries like AI, such as Seedlink.
But why is Shanghai such a blossoming tech powerhouse?
As you may know, the Chinese government promotes growth in specific sectors with leveraged government funding. In fact, the government launched several initiatives to create Chinese Silicon Valleys, most notably in Nanjing and Xiamen. While these urban tech ventures have been successful, Shanghai is still responsible for the lion’s share of China’s tech power.
With the city’s roots in banking and finance, many startups find Shanghai an easy place to secure much needed funding. Shanghai is also critically a free-trade zone.
Its population is also notable, as a bustling city always hungry for new lifestyle innovations. The society is known to readily embrace new technology into their lives. And as one of China’s wealthiest urban areas, the population has money to spend on new consumer technology.
Perhaps most importantly, Shanghai is historically the most foreign-friendly city in all of China. It has a long history of welcoming foreigners, including foreign business. This culture continues to seduce hopeful entrepreneurs internationally and domestically into the city limits to try their luck at a startup.
Of course, the government also plays a parental role in promoting the tech industry in Shanghai with government benefits and low-interest bank loans to promising tech companies.
All in all, Shanghai’s tech startup scene has grown incredibly quickly and shows great favorability for stability and continued growth. We’re excited to see what Shanghai’s tech future holds and happy to be apart of such a captivating and inspiring tech environment!