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Befittingly, Wuzhen has more than 2,600 Wi-Fi signal spots, allowing visitors to access the internet from nearly every corner of the town. It has also been reported to be the area with the most concentrated Wi-Fi coverage in the country.

Beijing has built up an AI competitive industrial cluster covering all industries, and has a big lead in related policies, an atmosphere of innovation and entrepreneurship, capital environment, software R&D and patent protection, said You Jing, vice-director of the software department under the commission.

Beijing, the nation's capital, remained second, thanks to its advantages in healthcare and educational resources, while Hangzhou, the so-called "Heaven on Earth" in Zhejiang province, held onto third place.

Behind all the prosperity is the Belt and Road Initiative, which is gaining steam.

Beijing, for instance, announced earlier in March that it will shorten the financial guarantee process and cut guarantee costs.