Inside China’s ‘Quantum Avenue’: Blueprint for Future Tech
A 3.5-kilometer road in Hefei, Anhui Province, has become the epicenter of China’s quantum technology ambitions. Known as “Quantum Avenue” (Yunfei Road), this industrial cluster hosts over 30 leading quantum enterprises spanning computing, communication, and measurement. As CCTV News reported on July 3, the avenue exemplifies how industrial collaboration and supply chain integration are building the future of quantum industries, positioning China as a key player in the next technological frontier.
Context: The Rise of Hefei’s Quantum Ecosystem
Hefei’s quantum journey began in 1998, when Professor Guo Guangcan of the University of Science and Technology of China (USTC) initiated the country’s first quantum information conference in the city. From that academic seed, a world-class industrial ecosystem has grown. Today, Hefei ranks second globally in quantum overall strength according to the ICV TAnK 2025 Index, and among the world’s top 20 quantum enterprises, three of the four Chinese firms are based here.
The city has cultivated between 93 and 97 quantum industry chain enterprises — the highest concentration in China. Key companies include QuantumCTek, China’s largest quantum communication equipment manufacturer; Origin Quantum, developer of the “Origin Wukong” superconducting quantum computer; CIQTEK, specializing in quantum precision measurement; and China Telecom Quantum Group, a state-owned entity formed in 2023 with ¥3 billion in capital.
Key Developments: Recent Milestones
The momentum on Quantum Avenue has accelerated dramatically in recent months. On June 24, 2026, QuantumCTek completed the first unit of its domestically developed dilution refrigerator (ez-QF1500), achieving a low-temperature limit of approximately 5.42 millikelvin — an internationally leading result. Just days earlier, on June 20, a USTC team demonstrated chip-based quantum communication (TF-QKD) over 540 kilometers of optical fiber, a breakthrough in long-distance quantum networking.
On June 26, China’s first quantum technology insurance cooperative was launched in Hefei, bringing together ten insurers to provide coverage for the emerging industry. In January 2026, the Hefei Quantum-Supercomputing Fusion Center went online, combining quantum and classical computing resources. The quantum industry chain revenue has exceeded ¥6 billion (approximately US$830 million), with 2024 chain revenue reaching ¥1.38 billion — up 21.6% year-on-year.
Analysis: The Hefei Model
What sets Hefei apart is not just the concentration of companies, but the deliberate ecosystem that supports them. The “Hefei Model” rests on several pillars: university-driven research anchored by USTC, patient government capital, open application scenarios, and dedicated task forces.
Wang Mingzhong of the Hefei Science and Technology Bureau captured the philosophy behind this approach: “Quantum technology is a typical ‘long-cycle, high-investment, high-risk, slow-return’ industry. Investing in future industries requires a long-termist spirit.” This patient approach is evident in cases like YaoZheng Quantum, which received ¥30 million in government funding when the team had only ¥2 million of its own.
Lü Bo, Deputy Director of the Hefei S&T Bureau, used a farming metaphor to describe the city’s role: “Products are seeds. After seeds are planted, whether they can grow into commodities depends on fertile soil and careful nurturing.” Zhou Lei, Vice President of QuantumCTek, confirmed that “in the early research stage, Hefei provided ample support in venue, funding, and coordination. Later, Hefei proactively opened up application scenarios, solving our urgent needs.”
Lü Pin, Chairman of China Telecom Quantum Group, emphasized the city’s unique advantages: “Hefei has USTC and other universities — it is one of the most leading cities in quantum technology R&D in China and globally.”
Policy Backing: A National Priority
Quantum technology is the number one priority among six “future industries” identified in China’s 15th Five-Year Plan (2026-2030). It has been mentioned in government work reports for three consecutive years. The 2024 “Future Industries Innovation Development Opinion” set targets for partial global leadership by 2025 and comprehensive global leadership by 2027.
This policy framework provides both direction and resources. Hefei established a Quantum Industry Task Force in 2025, drawing cross-department talent, and is currently establishing a Quantum Industry Talent Academy to address growing workforce demands. Lu Chenchen, Deputy Director of the Hefei High-Tech Zone S&T Bureau, described the government’s approach as “going with the flow” — not laissez-faire, but “respecting laws and scientific planning; it’s about proactive action and advance deployment.”
Global Competition and Challenges
China’s quantum strategy directly challenges U.S. dominance in next-generation computing. China currently leads in quantum communication engineering and deployment, having achieved quantum supremacy in both superconducting and photonic systems. Key achievements from Hefei include the “Mozi” (Micius) quantum satellite launched in 2016, the Beijing-Shanghai Quantum Backbone — the first thousand-kilometer quantum secure line — and the “Jiuzhang” photonic quantum computer operating at 255 photons.
However, significant challenges remain. The U.S. leads in quantum computing hardware diversity, software ecosystem development (IBM’s Qiskit platform hosts 85% of global algorithm developers), and private capital investment. For China, supply chain security is a persistent concern, with gaps in core component purity and performance.
What’s Next
As Hefei’s Quantum Avenue continues to expand, several questions will shape its trajectory. Can China achieve full self-sufficiency in quantum core components? When will quantum computing generate significant commercial returns beyond communication? And how will Hefei maintain its lead as Beijing, Shanghai, and Wuhan develop their own quantum clusters?
The insurance cooperative launched in June signals that the industry is maturing beyond research and development into commercial viability. With sustained policy support, a proven ecosystem model, and world-class research institutions, Hefei’s Quantum Avenue offers a compelling blueprint for how nations can build the industries of tomorrow.
As Lu Chenchen noted, the key is balancing patience with proactive action — a lesson that extends far beyond quantum technology.