Tongxiang - the city where Wuzhen, the permanent site for the World Internet Conference, is located - is targeting an output of more than 50 billion yuan ($7.18 billion) in its digital economy by 2020 taking advantage of the overflow effect of the annual cyberspace gala, which brings together top elites and experts from around the world.

Tongxiang established a science and innovation area in 2017 for the internet and advanced manufacturing sectors. The area includes a main urban district, an economic development zone and a characteristic town featuring a digital economy, said Sheng Yongjun, Party secretary of the city.

"In the first three quarters, the area has achieved an output of 37.2 billion yuan, accounting for 60 percent of the city's total," Sheng said.

Wuzhen stands at the core of Tongxiang's digital economy, with 84 percent of the city's digital companies choosing to establish businesses in the town. "Wuzhen had only 12 companies related to the internet or digital economy during the first WIC in 2014, while by the end of this year's third quarter, the number had exceeded 500," said Jiang Wei, Party secretary of Wuzhen.

Over the past five years, more information technology-related companies have chosen to set up shop in Tongxiang because of its support policies for industrial development and brain gain.

"Tongxiang's favorable industrial chain is without a doubt an important element," said Yin Xiaodong, CEO of Jiaxing Yuguang Optoelectronic Technology Co, which is engaged in advanced diffractive optics and micro nano optical design, manufacturing and application.

Established in Tongxiang in 2016, the company has developed the world's leading diffractive optical design software, unique optical system module design and manufacturing process.

And it will exhibit its latest technology at the ongoing fifth WIC.