Article sparks discussion on Nanjing vs Hangzhou

A provincial government-affiliated newspaper in Nanjing, Jiangsu province, has sparked debate with a series of articles examining why the provincial capital lags behind Hangzhou in the artificial intelligence age, while startups such as DeepSeek and Unitree in Zhejiang's provincial capital garner significant attention.

The two cities are often compared with each other, given that they are both provincial capitals in the Yangtze River Delta and are considered major economic hubs in East China.

The newspaper, Xinhua Daily, published the first installment of a three-part series, "Why Did Deep-Seek Appear in Hangzhou?" on Friday, praising Hangzhou for fostering innovation and providing a strong industrial chain and favorable environment for entrepreneurial teams.

The second part, "Why Can't Nanjing Develop 'Hangzhou's Six Small Dragons'?" was released on Saturday morning, directly comparing Nanjing with Hangzhou in terms of development, industry and business climate.

The term "Hangzhou's Six Small Dragons" refers to six technology companies that have emerged in recent years and are at the forefront of new technology fields, including DeepSeek, which captured global attention this year for its cost-efficient artificial intelligence models.

The others include robotics firms Unitree and Deep Robotics, video game studio Game Science, brain-machine interface innovator Brain-Co and 3D interior design software developer Manycore.

The article emphasized Hangzhou's higher tolerance for failure and greater risk-taking in venture capital, which has empowered young innovators.

It also urged Nanjing to address its shortcomings swiftly, fostering a more tolerant and inclusive urban atmosphere that supports private enterprises and prioritizes small businesses.

On Saturday afternoon, the third article, "Hangzhou Has DeepSeek, What Does Nanjing Have?" was published, highlighting the GDP disparity between the two cities. Last year, Nanjing's GDP reached 1.85 trillion yuan, maintaining its position as China's 10th-largest GDP city, but widening the gap with Hangzhou to 336 billion yuan.

On Monday, the newspaper released a fourth article, "Observations on Nanjing", continuing its exploration of DeepSeek and "Hangzhou's Six Small Dragons".

The article stated that in the wake of economic transformation driven by AI, Nanjing is grappling with two major concerns: whether it can take a leading role in innovation-driven development or maintain its position among China's top 10 GDP cities. It argued that the city must shed its deeply ingrained "institutional flavor" and cultivate a more dynamic urban culture.

Chen Anqing, founder of the Southern Media Institute, stressed the need for Nanjing to pivot from its reliance on traditional manufacturing and focus on industries such as semiconductors and AI. He also called for market-driven reforms in State-owned enterprises and improvements in the business environment, suggesting Nanjing emulates Hangzhou's strategies by reducing administrative interference and attracting young entrepreneurs.

Chen highlighted the importance of strengthening collaboration with cities such as Shanghai and Hefei, Anhui province, to prevent Nanjing from being overshadowed by the Hangzhou and Shanghai metropolitan areas.

Zhou Hongbo, Nanjing's Party secretary, acknowledged during the city's first meeting of the Year of the Snake that the rise of "Hangzhou's Six Small Dragons" was not accidental, attributing it to the city's strong innovation atmosphere, industrial ecosystem and business environment.

At the end of January, Nanjing issued the "Key Points of Optimizing the Business Environment in 2025", outlining 10 areas of focus to create a top-tier development environment.