The Silicon Valley in California is known for being the cradle of some of the most amazing tech ideas and solutions. It is where you’ll find the highest concentration of tech companies of all places on earth.
Well, that is until you’ve discovered Zhongguancun, a tech park located in the northern part of Beijing, China. This place has all the chances of becoming the next Silicon Valley, attracting more and more startup companies in the tech and IT domains. Also, the Zhongguancun tech park enjoyed a considerable amount of money invested by Beijing with the purpose of developing this area even more. We might soon see this place transformed into the new tech and IT incubator of this part of the world.
How did Beijing end up having a high-tech park?
For the past decades a high number of tech-savvy young adults in their 20s and 30s were attracted to this area due to the prestigious universities and research centers located here. Looking back 30 years to the farmland that was in this part of Beijing and seeing the numerous office buildings and incubators of today it is easy to see that Zhongguancun went through a major change triggered by the fascination by technology. Highly appreciated universities are the heart of this tech park, releasing new talent each year that is more than eager to bring something new to the industry by being the employees of the biggest companies in the tech and IT sectors. Some academic institutions even managed to establish outstanding collaboration and communication with the companies that unroll their activity in the area, which led to the coagulation of this tech hub.
Not just startups are drawn into this area like a magnet, but also multinational companies decide to open offices here. Ericsson, Google, Microsoft, IBM can all be found in this district. It appears that the symbiotic relationship between the prestigious educational facilities and companies works well, corporations being attracted here not only by the potential of this area, but also by the ease of finding well-educated, trained, skilled, and talented future employees. At present approximately 20,000 companies of all kinds and sizes call this hub home, companies with activity domains in IT, electronics, manufacturing, science, and other sectors decided that Zhongguancun is the best place to be.
Beijing noticed the evolutionary trend of the hub and decided to offer a helping hand, investing $1.5 billion to upgrade and improve the hub, which are financial resources that are added to the ones generated by the famous tech giants, universities, incubators, and startup themed cafés. The investment improved the infrastructure and the image of the area, while also making the kind of technologies that are developed in the hub public knowledge worldwide. 100,000 square meters were dedicated to incubators which generate a high number of international talents.
Should you set up your business in Zhongguancun?
Is it worth starting a tech company here or move offices to Zhongguancun in order to expand your existing business in China? The tech park should definitely be on your radar for all the reasons mentioned above. Everything here is focused on tech development and it is supported through every means possible. Being close to China's most prestigious universities, Peking University and Tsinghua University, along with the Chinese Academy of Sciences there is a great opportunity for leveraging R&D resources and attracting amazing talent for your company.
Besides, the park will offer you great working conditions, including an upgraded infrastructure, and you will even enjoy a set of benefits from the local government. Compared to other locations in Beijing, such as the Central Business District (CBD), office rent is more reasonable and it is definitely worth taking Zhongguancun into consideration as the location for a tech company.
