How China’s Yangtze River Delta became a tech powerhouse
Start-ups rise fast where traditional manufacturing once ruled – powering Beijing’s innovation and self-reliance push
“More than 90 per cent of the components, including critical parts like torque motor joints, actuators, control units and dexterous robotic hands, are developed in-house and locally manufactured,” said Wu Changzheng, the company’s president and a graduate of Shanghai Jiao Tong University. “The other 10 per cent is in central processing units (CPUs).”
Magic Lab is one of thousands of cutting-edge ventures reshaping Jiangsu and neighbouring Zhejiang province. Once known for producing textiles, chemicals and machinery, the Yangtze River Delta is now home to a new generation of firms developing technologies critical to China’s future.
The start-up has developed a general-purpose AI model that integrates sensing, navigation and movement control, enabling its humanoid robots to quickly adapt to tasks and cooperate in real-world environments.
According to Wu, the local government has fostered a supportive environment through tax incentives, industrial estates and other measures, providing the company with a solid foundation. Most of its funding comes from private sources, with the firm largely driving its own research and development.
One of the main factors attracting MagicLab to Jiangsu is its mature manufacturing base — particularly in next-generation information technology, high-end equipment, new materials and other advanced sectors. This offers quick access to upstream and downstream support and helps reduce supply chain costs, according to the company.