Xiamen, Fujian province, long known as a famous tourist destination, is planning to invest 3 billion yuan ($461.7 million) in subsidies and financial awards over the next three years to spur innovation and entrepreneurship.
The funds will go toward improved facilities and services for startups, according to an official document issued in October 2015.
The new policies will support the development of hackerspaces, which are community-operated workshops where people with common interests, often in computers, technology or digital art, can socialize and collaborate.
They are different from the traditional incubator model and science parks, where startups share office areas, labs and facilities. Hackerspaces are often lower in cost and feature more convenient services and open cooperation, according to government officials.
The State Council's work report last year discussed the development of hackerspaces, which will create business opportunities for companies in Internet sectors.
The Xiamen government is making efforts to foster an innovation and entrepreneurship-friendly environment to create a paradise for startups.
In Jimei district, the site of the 2016 Asia Beat Xiamen, there is an industry park covering nearly 200,000 square meters for hackerspaces, featuring the integration of research, teaching and industrial production.
The district government also has launched funds and services including accounting, legal consultation and intellectual property to boost innovation and commercialization.
City-level hackerspaces that have been operating for three years will each be given an award of 400,000 yuan, and a national-level hackerspace will be awarded 1 million yuan.
The policies will also drop the high restrictions that small companies face - such as requirements for total assets, revenue, scale and registered capital - to be eligible for government contracts.
"We encourage hackerspace operators to form alliances, providing them with a one-stop service that includes financing, marketing, training, accounting and consultation, so that people only have to bring a laptop to start their businesses in Xiamen," said Pei Jinjia, the city's mayor.
The government will not only give space to allow the startup teams to grow, but also improve policies and guidelines "to let people with dreams realize their dreams", said Pei.
The city currently has 92 hackerspaces, 35 of which have gained city-level designations, cover more than 70,000 square meters of office space and have attracted about 3,200 employees from 474 startup teams.
These teams are involved in a wide range of businesses, such as the Internet, e-commerce, electronic manufacturing and the cultural creative industry.
There are also 13 provincial-level hackerspaces, each covering at least 500 square meters.
The government encourages companies to transform idle warehouses and factory space into startup clusters, giving each of them up to 2 million yuan in subsidies.
Founded in 2013 by 82 entrepreneurs, Atwork is the first hackerspace in Xiamen and one of the first provincial-level hackerspaces. The cafe-like community features low costs, an Internet-based operation and a relaxed business environment, providing not only office space and facilities, but also an apartment building, gyms, free consultation and lectures.
Its six locations cover a total area of more than 14,000 sq m with more than 100 projects.
"The national strategy of innovation and entrepreneurship happens to be the personal will of the teams," said Yao Jincheng, co-founder and CEO of Atwork. "The government has simplified approval procedures to serve the innovative teams in a market-oriented way. The policies have given us confidence and helped us improve efficiency."
He added that they will optimize their business model and introduce it to other cities.
Yao said it is both a good time and bad time for startups - good because the government at all levels support entrepreneurship, bad because they need more patience and a hardworking spirit.
Meng Qian, head of the city's development and reform commission, said the city government is building "entrepreneurship ecology circles", an innovative model to encourage innovation and entrepreneurship, to answer the State Council's calls for cooperation among enterprises, universities, research institutes and startup teams.
An "entrepreneurship ecology circle" includes a group of large and small companies, startup teams, government services and financial agencies.
The second phase of the Xiamen Software Park to the east of the city, covering an area of about 1 square kilometer, is one such community. In the area, people can reach nearly everything they need for business or living within 15 minutes of walking, such as apartment buildings, a government service center, restaurants and social gathering spots.
In 2015, the park introduced a number of national leading hackerspace operators, adding 11,800 sq m of hackerspace area and 144 teams.
The Xiamen government also has carried out multiple measures to attract high-level talent. It launched a talent program to give preferential policies and subsidies to returning overseas professionals with technologies, projects or capital.
Research teams from universities and institutions are encouraged to take part in companies' innovation projects.
College students are allowed to suspend their studies to start their own businesses and can apply for special loans of up to 300,000 yuan.
While people have compared Beijing's innovation hub Zhongguancun to Silicon Valley in the United States, Meng said Xiamen is more like Seattle.
"Seattle is an innovation center but has a different innovation model from Silicon Valley," he said. "Although it has fewer universities and high-tech companies, Seattle has a good urban environment and a number of industry leaders such as Microsoft and Boeing, and can provide innovators and startups with first-class services."
Likewise, one of Xiamen's advantages is its environment. "The city is beautiful and open, providing possibilities for startups," he said.
Although the city currently has few industry giants, Meng said he sees some potential future leaders like software developer Meitu, data service provider Meiya Pico and animation company Migu.
"Combining Xiamen's environment and cultural background, we have more advantages to develop the creative industry," he said.
China announced and implemented on May 15 a policy allowing visa-free entry of foreign tourist groups aboard cruise ships via all cruise ship ports along the country's coastline.
China and Georgia are set to waive visa requirements for travelers starting May 28.
