In March 2026, a discussion about China's manufacturing industry was sparked in Chongqing by a figure from Hunan. Zhang Xue Motorcycle Industrial Co., Ltd., based in Chongqing, achieved a historic breakthrough for Chinese motorcycle manufacturers by winning both rounds at the World Superbike Championship (WSBK) in Portugal. While the victory quickly gained widespread attention, it was a clipped post-race interview that truly ignited public debate—Zhang Xue remarked, "Not a single penny." Overnight, a narrative emerged praising Zhejiang while criticizing Chongqing: Zhejiang's capital was hailed for "recognizing talent," while Chongqing's state-owned assets were deemed "absent and inactive." This either-or storyline spread rapidly.
Zhang Xue later clarified that he meant, "I have never taken government money," and emphasized that "Chongqing not only provided the soil for me to build vehicles but also gave me strong confidence." The success of a single enterprise should not be simplified into a zero-sum game. On the contrary, the story of Zhang Xue Motorcycle reflects a deeper theme: within the landscape of China's intelligent manufacturing, there exist two distinct driving forces—Chongqing's "industrial chain integration" and Zhejiang's "capital empowerment." These function like two wheels in the upgrade of manufacturing, interlocking and complementing each other to propel China's industrial sector forward.
Chongqing's foundation lies in its legacy as an industrial city. Zhang Xue's choice of Chongqing was no accident. In the 1970s, China's first independently developed motorcycle, the "Jialing 50," was born there. By the early 1990s, Chongqing-produced motorcycles accounted for over 60% of national production and sales, earning the city the title of "Motorcycle Capital." Chongqing hosts 39 of the nation's 41 major industrial categories and all 31 manufacturing categories, enabling the procurement of nearly all components for high-performance motorcycles within a radius of several dozen kilometers. This comprehensive industrial ecosystem is the result of decades of accumulation and represents the "soil" Zhang Xue referred to.
Today, this foundation is undergoing deeper transformation. In 2025, Chongqing's annual automobile output reached 2.788 million units, a 9.7% year-on-year increase, securing its position as the top city nationally. New energy vehicle production hit 1.296 million units, 30 times the 2020 figure, with industrial cluster scale approaching 800 billion yuan. Within the "33618" modern manufacturing cluster system, intelligent connected new energy vehicles are prioritized. Chongqing has established a full industrial chain system encompassing 19 vehicle manufacturers and 1,200 component suppliers. Transitioning from "Motorcycle Capital" to "Intelligent Connected New Energy Vehicle Capital," Chongqing is leveraging its existing industrial base to ascend—embracing smart upgrades within traditional strengths rather than starting from scratch.
Notably, Chongqing is nurturing a group of hard-tech firms with core technologies. Zhongke Yaoluchuan, focusing on "light + AI" integration, has accumulated over 170 intellectual property rights. Similarly, companies like Xinjing Glass and Tailan New Energy hold key technologies in critical segments. Zhao Min, Executive Dean of Jilin University's Chongqing Research Institute, describes these enterprises as Chongqing's "Intelligent Manufacturing Seven Dragon Balls," echoing Hangzhou's "Six Little Dragons." In the national pattern of factory intelligence characterized by "high in the east, fast in the center, broad in the west," Chongqing's western region continues to expand digital coverage, with specialized categories rapidly entering niche markets via AI. However, the Chongqing model has its limitations. Some argue that its industrial policies tend to reward success retrospectively, providing subsidies after achievements rather than early-stage critical support. Yao Shujie, an economics professor at Chongqing University, suggests that future efforts should emphasize financial backing, especially for strategic emerging industries and innovative traditional firms. Such reflections indicate Chongqing's ongoing reassessment of its development path.
Zhejiang's engine lies in its "soft power" of patient capital and digital infrastructure. If Chongqing's strength is its "hard" industrial chain, Zhejiang's advantage is its "soft" capital and digital ecosystem. In January 2026, Zhejiang Venture Capital completed a Series A investment in Zhang Xue Motorcycle totaling 90 million yuan, post-investment valuation reaching 1.09 billion yuan. Before Zhejiang Venture Capital approached Zhang Xue in August 2025, the company was in its most difficult period—unable to pay salaries at the start of the year. Zhang Xue gathered 7 million yuan from friends, peers, suppliers, and even landlords to cover wages. Nearly 70 million yuan had been invested in R&D for core technologies like three-cylinder engines, incurring losses from innovation. By traditional investment metrics, this represented an "unattractive balance sheet." However, Zhejiang Venture Capital's deep due diligence revealed that while the overall motorcycle market growth was limited, the high-end segment above 250CC was growing at over 40%. This precise identification of niche opportunities was key to their decision to "bet" on the company.
Cheng Junhua, General Manager of Zhejiang Venture Capital, explained the logic of state capital in early-stage investing—investment committees require no forceful persuasion; clear project presentation, highlighting strengths, and risk mitigation enable informed decisions based on understanding. This professional approach allows state-backed venture capital to act as "patient capital." Following Zhang Xue Motorcycle's victory, the investment returns far exceeded expectations.
Zhejiang's "patient capital" is not isolated but part of a systematic institutional framework. The provincial government investment fund has grown over years into a cluster exceeding 300 billion yuan. The social security sci-tech fund established in Zhejiang in 2025 has an 18-year term, far exceeding the typical 8–10 years, providing long-term support for hard tech and original innovation. Policy-based funds are evaluated not primarily on capital preservation but on strategic outcomes like industrialization of scientific achievements and incubation of early-stage projects, emphasizing long-term value over individual successes. Benefits extend beyond Zhang Xue Motorcycle—companies like Blue Arrow Aerospace, a leader in China's private space sector, and Qianxun Intelligence in embodied AI, also benefit from Zhejiang capital.
Simultaneously, Zhejiang's digital economy base offers another layer of support. During the 14th Five-Year Plan period, Zhejiang became the only province with dual pilot zones for digital economy and data elements, with digital economy value-added exceeding 5 trillion yuan and core industry value-added over 1.2 trillion yuan, accounting for 13% of GDP. In 2026, Zhejiang aims for 6% growth in industrial value-added, 8% growth in digital economy core industries, and "415X" cluster revenue exceeding 10 trillion yuan, implementing a "Spark Plan" for future industries to enhance clusters in AI, IoT, integrated circuits, and high-end software.
If Chongqing's model is "attracting capital through industry"—building industrial chains first to naturally draw capital—then Zhejiang's approach is "nurturing industry with capital"—using capital to spur innovation and accelerate industrial growth. Neither path is superior; each represents a choice based on local endowments.
The emotional narrative of "praising Zhejiang, criticizing Chongqing" obscures a fundamental fact: Chongqing need not become "the Zhejiang of the West," nor can Zhejiang replicate Chongqing's industrial chain. Their differences exemplify the diversity of Chinese manufacturing. Chongqing's strength lies in "comprehensiveness"—complete industrial categories, deep manufacturing heritage, and integrated supply chains from components to finished products form a "hardcore" manufacturing base. Zhejiang's strength is "agility"—acute private capital, multi-tiered fund systems, and mature digital infrastructure create a "flexible" innovation incubator.
The two models are not mutually exclusive but complementary. A Chongqing delegation visited Zhejiang in 2025 to study digitalization, explicitly aiming to "reshape the industrial ecosystem through digital means." Chongqing is accelerating the "industrial brain + future factory" model, advancing smart transformation under the "33618" framework. Chongqing's industrial hard power and Zhejiang's digital soft power function like two wheels in manufacturing upgrade—one providing the chassis and power, the other navigation and acceleration.
Returning to the Zhang Xue incident, Cheng Junhua stated plainly: "When we invested, Zhang Xue Motorcycle had not yet won. After the victory, we believe more talent will join, and we have greater confidence in him." This investment logic does not conflict with Chongqing's industrial ecosystem. China CITIC Bank's Chongqing branch established regular communication with Zhang Xue Motorcycle from its inception, providing 10 million yuan in supply chain financing in December 2025. Bank of China's Chongqing branch issued an initial 10 million yuan loan in December 2025 and, as lead bank of a syndicate, extended over 240 million yuan in credit in February 2026. China Minsheng Bank's Chongqing branch offered full-process financial services like account setup, settlement, and payroll during the startup phase. Chongqing's state capital is not "absent" but operates in its area of expertise—providing "soil-like" support such as venues, finance, and industrial配套. Zhejiang capital provides "nutrients" when firms most need to "break ground."
Thus, Zhang Xue Motorcycle's success is not a contest between "Chongqing model" and "Zhejiang model" but a synergy of both forces on the board of China's intelligent manufacturing. As a representative of Zhongke Yaoluchuan noted, an ideal innovation environment should resemble a "rainforest" ecosystem, with towering trees and new saplings coexisting, where large, medium, and small enterprises each contribute to mutual prosperity.
The future of Chinese manufacturing requires both industrial bases like Chongqing to provide a solid foundation and innovation hubs like Zhejiang to supply continuous momentum. Interwoven, these two hues sketch a rich and multidimensional panorama of China's intelligent manufacturing.