(Yicai) Sept. 17 -- Chinese cities, including Shenzhen and Hangzhou, are rolling out rent-free office programs for innovative technology firms as part of a growing competition to attract next-generation industries.

Industry insiders told Yicai that local governments see these “zero-rent” initiatives as a way to nurture new industrial clusters and strengthen future tech ecosystems.

The policies primarily target startups in sectors such as the digital economy, robotics, and advanced manufacturing, underscoring intensifying competition among cities to secure leadership in emerging industries.

Shenzhen was among the first movers. In March, the State-owned Assets Supervision and Administration Commission announced that state-owned industrial parks would provide 100,000 square meters of rent-free space for small and micro technology companies meeting eligibility requirements.

Hangzhou and Suzhou launched similar programs in April. Hangzhou’s Qiantang Smart City offered three years of rent-free space at its 20,000-square-meter robotics park, with individual firms allowed up to 1,000 square meters. One local bionic vision startup gained approval within 20 days, saving CNY164,000 (USD23,050) in annual rent, its founder said.

In July and August, Guangzhou and Shanghai joined the trend. Beyond free office space, the two first-tier cities are offering additional incentives, including multimillion-yuan financing support and employee housing.

Last month, Shanghai’s Lingang Group unveiled the Zero-Bound Cube project in the Lingang Special Area near Pudong International Airport. The initiative provides rent-free offices for startups and free housing for entrepreneurs, aiming to lower costs for young founders in fields such as hard tech, data processing, cross-border livestreaming, and short-form video production.

Editor: Emmi Laine