Shanghai’s software and information services industry saw a 20% year-on-year revenue jump in the first five months, making it the fastest-growing among China’s top four regions in the sector, outpacing Beijing, Zhejiang, and Guangdong, according to local officials on Monday.

Shanghai has introduced 17 new policies across four key areas to sustain its growth in the software and information services sector.

These measures include incentives for companies reaching record-breaking revenues, promoting research and development in artificial intelligence, and boosting the use of digital and AI technologies to modernise traditional industries.

The policies also aim to reduce costs for high-tech firms in areas like talent recruitment and fundraising, according to the Shanghai Municipal Commission of Economy and Information, Shine News reports.

From January to May this year, Shanghai’s software and information services industry brought in over 690 billion yuan (US$95.8 billion) in revenue, a 20.4% increase year-on-year, significantly outpacing the national growth rate of 14%.

Shanghai’s chip design and industrial security sectors experienced rapid growth, reflecting China’s broader push for technological self-sufficiency.

This drive for independence in software development has taken on greater urgency as the United States continues to enforce strict technology restrictions on Chinese tech firms, heightening the need for domestic innovation and resilience.

In addition, the first half of the year saw Shanghai secure 98 fundraising deals within the software and information services sector. This represents 16% of all such deals nationwide, underscoring the city’s growing role as a key hub for tech investment and development, according to the Shanghai Municipal Commission of Economy and Information.