Suichang county in Lishui, East China's Zhejiang province, signed a cooperative agreement with Aliyun, Alibaba's cloud computing subsidiary, for the establishment of a scientific and technological innovation island on July 23.

With its core area located in Xianxia Lake in Hushan, the project has a planned area of three square kilometers, covering Hushan, Jinzhu, Shilian and Dazhe townships in Suichang.

The signing of the project gives Suichang the opportunity to cultivate a smart economy, a time-sharing economy, and research and development (R&D) economy in software development, digital services, life and health, and promote the integrated development of agricultural, cultural and scientific innovation.

"The cooperation was the result of Lishui's determination to develop a digital economy," said Chen Liang, an official from Aliyun.

Aliyun is a world-leading cloud computing and artificial intelligence (AI) technology company. Aliyun will give full play to its advantages in the new economy, new infrastructure, brands, technology and talent, and vigorously promote Suichang's development as a digital village, a future scientific and technological innovation island, a digital government, and its transformation into a digital industrial center.

Wang Gangbo, director of Husha's village committee, said that more and more villagers are choosing to return to their hometowns after the announcement of the project with Aliyun, and many investors have come to Hushan to investigate the project.

In June this year, as an important part of the project, construction of a greenway around Xianxia Lake began. With investment of about 250 million yuan ($35.69 million), the greenway will be capable of hosting various marathons.