Hunt for human capital heats up

Value addition

While a fat paycheck and focused job environment remain important, young people increasingly value emotional connection, a sense of belonging, a comfortable lifestyle and the entertainment quotient of a city.

Survey data shows that work-life balance is considered more important than high income, and young people are making rational choices based on a city's inclusiveness, development prospects and tolerance for failure, among other factors.

In 2018, Yanggong Yifan, a former Google engineer specializing in core tensor processing units, or chips to accelerate artificial intelligence, led a team of AI experts from Silicon Valley to return to China and start a business. Their company, CL Tech, was officially registered and established in Hangzhou in 2020.

"Back then, AI development in China was in a trough and the confidence in large models was generally low. Hangzhou, however, had a certain AI ecosystem and was making forward-looking moves," recalled Huang Xu, chief marketing officer of CL Tech.

In the initial phase, the company received dedicated fund support coordinated by the local government, effectively resolving teething financing problems, she said, adding that in 2024-25, the company also received financial support from Hangzhou's innovation funds.

"Strong government support not only addressed the core funding needs at a critical stage of chip R&D and industrialization, but also buoyed market confidence, attracting more social capital to the company and driving its rapid growth," Huang said.

CL Tech is dedicated to developing high-performance tensor processing units and intelligent computing clusters that support ultra-large-scale AI model computation. It has become the first company in China to master core TPU architecture and achieve mass production of such chips.

Huang said that when recruiting high-end talent, she can feel Hangzhou's strong appeal, because the city boasts a comfortable living environment, rich history, and keen industrial and policy development efforts — everything that aligns with the aspirations of young people.

Zhang, the professor from Dongbei University of Finance and Economics, noted that young people value a space where they can fully use their abilities, where they have ample scope for growth, and where they can live comfortably and potentially raise a family.

Cities competing to accumulate human capital crucial for industrial upgrading and innovation-driven development may need to reconfigure their outlook, Zhang said, adding that they should focus on envisioning and implementing policies that nurture both professional and personal growth.

For Wang, the college student who interviewed in Hangzhou, the choice is clear. But for cities seeking young talent like her, the road ahead is long and arduous.

Zhang sums it up best: "Whichever city can attract and retain high-end talent will gain the sharpest edge. And this winner of the 'talent war' will ultimately lead the region's economic growth."

Chen Ye in Hangzhou contributed to this story.

zhangxiaomin@chinadaily.com.cn