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But Chinese commerce officials have made it clear that trust is the precondition for such talks.

But challenges will ensue, he said. "Ninety percent of employers would be local residents. So culture, language, customs - they would need attention. So would key aspects like security."

But Ningbo is not content to rest on its laurels and looking to up the ante. The export-oriented city, which has been upgrading its manufacturing sector and enhancing its competitiveness, has identified the biopharmaceutical industry as its next sunrise sector.

But Lee Soo-young, a director of the Institute for Artificial Intelligence at the Korea Advanced Institute of Science and Technology, or KAIST, said by telephone the new technology is being more widely embraced in South Korea, where large employers wield much influence in a tightening job market.

But more important than the competition is the creativity and development that is fermenting in the area.