Hefei model: How China's inland city became a tech powerhouse

In Hefei, China's Anhui Province, the F2 factory operated by electric vehicle brand NIO buzzes with activity. Around 1,300 robots and 500 automated carts work ceaselessly, producing one electric vehicle per minute. Human workers are rarely seen as robots handle assembly and welding, while self-driving carts transport parts. The factory collects 1.5 terabytes of data daily, aiming to automate decision-making processes.

This state-of-the-art facility highlights Hefei's dramatic transformation from a "huge farming village" a decade ago to a burgeoning center for cutting-edge technology. The city's explosive growth is attributed to strategic investments by the Hefei municipal government and the central government's Yangtze River Delta integration strategy. In the first quarter of 2026, Hefei's economy grew by 6.8%, leading all 29 major Chinese cities.

The "Hefei speed" and "Hefei model" are emerging as symbols of China's new economic path, distinct from the private-sector-led "Shenzhen model" of the 1980s. While Shenzhen symbolized growth during globalization, the Hefei model reflects China's current strategy amid national security concerns and the decline of globalization, characterized by intense technological competition with the US.

A key element of the Hefei model is the government's central role. The city manages five investment funds and, in 2008, famously diverted a third of its fiscal revenue to attract BOE, a display manufacturer, even temporarily halting subway construction. This proactive government intervention underscores the strategic, state-led approach driving Hefei's technological ascent.

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We have an internet network installed in the factory basement that collects around 1.5 terabytes of process data every day. Our goal is to automate the decision-making process at some point down the road.