File photo of Caocao's robotaxi. [Photo/Caocao-China]

Zhejiang ranked first among all Chinese provinces and municipalities in the 2020 Report on the Regional Development Index for Service-oriented Manufacturing recently released at the 4th China Service Oriented Manufacturing Conference in Hangzhou, capital of East China's Zhejiang province.

The conference this year was co-hosted by the Zhejiang provincial government and the Ministry of Industry and Information Technology.

A province or municipality's development index was calculated based on an evaluation by experts of its business environment, infrastructure, general performance, and integration of services and manufacturing in its service-oriented manufacturing sector.

Zhejiang manufacturers are in the midst of a rapid transition into service providers. For example, the Hangzhou-based Geely Auto, China's largest privately-owned carmaker, established a ride-hailing subsidiary – Caocao – in 2015. The subsidiary has made extensive use of Geely's vehicle networking, autonomous driving, and new energy vehicle technologies to produce high-quality services.

In addition, Hangzhou Boiler Group, founded in 1955, no longer only sells boiler products, but is also providing its clients with technical solutions spanning the full life of its products. At present, service charges make up more than one third of the company's total revenue.

In September, a research institute dedicated to service-oriented manufacturing, the first of its kind in China, was established in Hangzhou's Yuhang district.