Dalifornia, Yunnan

by Sebastien GOULARD

The city of Dali in Yunnan is on the verge of becoming a new California, attracting young talents and entrepreneurs from China in search of a better quality of life and a more laid-back atmosphere reminiscent of California. As the city continues to draw more young Chinese individuals, what could be the future of Dali? How can authorities contribute to the development of the hi-tech sector without compromising the essence of this emerging “Dalifornia”?

The metropolis of Dali has a population exceeding 3.3 million, with a significant Bai minority. Located approximately 300 km from Kunming, the capital of Yunnan province, it enjoys a pleasant climate throughout the year. The city was already a major tourist destination for both local and foreign visitors well before the Covid crisis. Renowned for its well-preserved historic center, the three pagodas of the Chong Sheng temple, and its mountainous landscapes, Dali began attracting digital nomads in the early 2010s, earning it the nickname “Dalifornia.” However, it was the Covid pandemic that truly transformed the city, with less stringent restrictions compared to major Chinese metropolises.

A portion of the young Chinese generation harbors new aspirations, and as noted by Yan Dongjie, the number of digital nomads has increased since the end of the pandemic. This generation is turning to the countryside, particularly the Yunnan province, to escape the economic and social pressures of Beijing and Shanghai.

Both online and traditional media have seized upon this trend, making the city even more popular among the youth and visitors, reinforcing the weight of the tourism economy in Dali. However, the influx of digital nomads has also given rise to a burgeoning technology sector.

How can the authorities of Dali and the Yunnan province capitalize on this trend to strengthen this economic activity and make Yunnan a new Silicon Valley?

Firstly, it’s important to note that many Chinese cities have entered the innovation race and implemented numerous programs to develop this industry, including the establishment of new business parks. However, this model may not work in Dali, where digital nomads have settled primarily for the quality of life the city offers. Preserving these conditions is crucial, including safeguarding the city’s architectural heritage and environment, as well as controlling potential real estate speculation resulting from its newfound appeal.

Interactions with established companies are necessary, but the municipality must also focus on supporting entrepreneurs in their projects by facilitating bank loans.

However, the paramount condition for a potential “Dalifornia” is the preservation of lifestyle, authenticity, and the ability of these digital nomads to undertake ventures. It is logical for authorities to be concerned about the activities of these young entrepreneurs, which could develop problematic solutions, such as those related to blockchain technology—a heavily regulated sector in China. The Californian model of Silicon Valley has often been imitated but never equaled. Its success largely stems from the freedom to undertake, and this is what the authorities of Dali and Yunnan must encourage, as it was done about thirty years ago in Shenzhen.