- The city’s “296X” industrial system has sustained growth of more than 7% for 11 consecutive months
- AI, electronics and automotive manufacturing are among the key growth drivers, while Hangzhou strengthens its position in robotics
Hangzhou’s advanced manufacturing clusters generated more than 900 billion yuan ($134.5 billion) in industrial output in the first eight months of 2026, up 9.3% from a year earlier, as the city’s push to upgrade its manufacturing capabilities continued to gain momentum.
The growth rate was 1.6 percentage points above that of Hangzhou’s industrial sector overall, according to local media reports citing municipal data. The clusters’ output growth has remained above 7% for 11 consecutive months.
Two trillion-yuan pillars
Hangzhou introduced its “296X” advanced manufacturing framework in October 2025, organizing its industrial development around two trillion-yuan clusters — artificial intelligence and visual intelligence.
The two sectors are supported by nine clusters targeting 100 billion yuan each, including embodied AI robotics, integrated circuits and intelligent connected vehicles.
A further group of emerging industries, including synthetic biology, brain-inspired intelligence and the low-altitude economy, forms the “6 plus X” component of the framework.
Several manufacturing segments recorded double-digit growth in the first eight months.
Value added in digital-economy manufacturing rose 16.9% year on year, while high-tech manufacturing increased 14.2%.
Both outpaced growth in value added across industrial enterprises above designated size by 10.1 and 7.4 percentage points, respectively.
Value added in computer, communications and other electronic equipment manufacturing grew 17.7%, followed by general-purpose machinery at 11.3% and automotive manufacturing at 10.9%.
Investment gathers pace
The city also reported a steady pipeline of industrial projects. From January to August, the clusters added 510 projects worth at least 100 million yuan to their negotiation pipeline, while 223 projects began construction and 154 started operating. Another 77 projects entered production.
Both industrial investment and manufacturing investment rose 13.2% year on year, pointing to continued spending on capacity and industrial upgrading.
The 296X framework represents a broader effort to reorganize Hangzhou’s manufacturing base around its existing digital-economy strengths. Municipal leaders oversee individual clusters, supported by a monthly meeting arrangement.
Since the framework was introduced, growth in Hangzhou’s value added from industrial companies above designated size — meaning those with annual main-business revenue of 20 million yuan and more — has widened its lead over the national rate, from 0.1 percentage point to 1.5 percentage points, according to local media.
Hangzhou is also building a global profile in embodied AI. In the first half of 2026, three local companies — Unitree, DEEP Robotics and MicBot — ranked among the world’s top five suppliers of quadruped robots by shipments.
Together, they account for nearly one-third of global shipments, according to the report.
