Geocultural Forces Reshaping China's Economic Map

Guangzhou (No. 8 in 2005, No. 22 in 2025) also used its status as the province's capital and largest city to establish itself as a major manufacturing and trading hub.

That manufacturing success spurred the formation of innovative local firms, including Huawei in telecommunications, DJI in drones, Tencent in digital services and BYD in batteries and electric vehicles.

While these firms continue to make their mark in China and abroad, the country's cutting-edge startup scene has shifted further north. China's latest five-year plan, released March 12, makes the new centers of gravity clear.

In artificial intelligence and robotics, Zhejiang's capital Hangzhou leads with local champions DeepSeek and Unitree, backed by hometown tech giant Alibaba.

In biomanufacturing, national champion WuXi Biologics has facilities in Hangzhou, Jiangsu's Suzhou (No. 25 in 2005, No. 7 in 2025), and neighboring Wuxi (No. 11 in 2005, No. 5 in 2025).

The divergence in high-tech entrepreneurship may partly be explained by the presence of top educational institutions.

Last March, The Economist profiled Zhejiang University, concluding that its presence is instrumental in turning Hangzhou into a startup hub - much as Stanford has done for Silicon Valley.

Indeed, various university rankings consistently place both Zhejiang University and Nanjing University - located in Jiangsu's capital Nanjing (No. 31 in 2005, No. 11 in 2025) - alongside several universities in nearby Shanghai and Anhui province, in the top 10, while Guangdong has no entries.

The educational advantage Jiangsu and Zhejiang hold over Guangdong has centuries-old roots. Since the Southern Song Dynasty, Jiangnan - the region encompassing the southern bank of the Yangtze River, spanning parts of Jiangsu and Zhejiang - has been China's premier cultural and economic hub, parlaying strength in agricultural productivity and trade into artistic and intellectual achievement.

In contrast, Lingnan, which encompasses modern-day Guangdong, was historically open to seaborne trade but remained culturally distant from the rest of the country due to its geographic isolation.

Both regions have strong commercial traditions, but Jiangnan's intellectual heritage may give it an edge in producing the talent needed to push the technological frontier.