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China tech

China's tech startups flourish in talent-rich second-tier cities

Cheap rent, plentiful graduates spur gaming industry in Chengdu and Wuhan

The company behind Douyu, a popular video-streaming platform, has grown into a top startup in Wuhan, Hubei Province. (Photo by Shunsuke Tabeta)

TOKYO/DALIAN, China -- Chinese technology startups are flocking to second-tier cities, taking advantage of large talent pools and operationals costs that are substantially lower than in main metropolises such as Shanghai and Shenzhen.

Chengdu, a city in Sichuan province, has become a hive of esports and gaming startups. In Hubei Province, Wuhan has enjoyed a flurry of startup activity spurred by the success of streaming unicorn Douyu.

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