Chinese startup hubs are catching up to Silicon Valley

A tea shop helps incubate startups and showcase their products. Photo: Emmanuel Wong/Getty Images

Silicon Valley is still king when it comes to startups, but Chinese cities like Beijing and Shanghai are quickly catching up — with Beijing reaching more than half of Silicon Valley's funding in 2018, according to new data from CB Insights.

Why it matters: China is a huge market, so it's not surprise its local startups are fast growing and raising buckets of capital. But the country's increasing ambitions to become a tech superpower is sure to boost this trend.