Beijing is most certainly the software center of China. I work in a Shanghai startup and when we raise funding we have to go to Beijing to find the VCs. Beijing also has the best universities in China, so the talent is there. China&#x27;s version of the Paypal Mafia is more like the Microsoft Mafia. Look inside of most top software companies in China and you can almost certainly find a handful of execs who worked at Microsoft around the year 2000. Microsoft&#x27;s offices were (are?) in Beijing, so most of them hung around after they left to startup or join other tech companies.<p>Shenzhen is the center of the manufacturing world, and as the article points out they have DJI which produces 70% of the world&#x27;s drones. Essentially anyone who wants to produce something cheaply and quickly will have something being produced in or around Shenzhen. If the Internet of Things really takes off into a mainstream industry then Guangzhou and Shenzhen will become a secondary hub of innovation. I just heard recently that Cal-Berkeley is establishing an engineering graduate program with Tsinghua to be hosted in Shenzhen. For a university right outside of Silicon Valley to do this is definitely saying something.<p>Shanghai has a decent number of finance related startups, but people in Shanghai tend to be motivated to work in large multi-national companies. Go to a startup in Shanghai and you&#x27;ll find mostly people from outside of Shanghai without the best education - not saying that it&#x27;s impossible for these people to create a great company, but it&#x27;s a far cry from Beijing where Tsinghua and Beijing University students are being recruited to early stage startups.<p>Alibaba and a few other tech companies are in Hangzhou, but that city still lacks the pre-A, A series type companies that Beijing and Shanghai have.<p>Chengdu in the West has offices for half of the Fortune 500, but although I&#x27;ve heard the local government is pushing hard to attract entrepreneurs, their startup ecosystem seems to still be lacking. It&#x27;s possible that if some of these employees leave their Fortune 500 employers to startup then the city could become more of a hub in the future.