In Hefei, Anhui province in east China, a smartphone, outfitted with custom software and a quantum SIM card, can now enable secure, unbreakable communication. The China Telecom Quantum Group, headquartered in the city, recently demonstrated this next-generation encryption technology. The group's flagship product, which integrates quantum encryption with real-time communication, has already attracted nearly six million users.

As a national hub for quantum innovation, Hefei is home to nearly one-third of China's quantum technology enterprises. The city is rapidly transforming its scientific edge into industrial momentum, building a robust ecosystem to support the commercialization of frontier technologies.

Lab breakthroughs to factory floors

Hefei's emergence as a quantum hub is no accident. "Hefei hosts top research institutions like the University of Science and Technology of China (USTC), making it one of the global leaders in quantum R&D," said Lu Pin, chairman of the China Telecom Quantum Group. "We chose to base our company here precisely because of the city's innovation capacity. "

Yet turning advanced science into market-ready products requires more than research — it demands tight integration between academia, industry, and application. To this end, the Hefei Science and Technology Bureau has established a dedicated task force to coordinate quantum industry development. It hosts regular joint meetings, formulates supportive policies, and facilitates deep collaboration across the innovation chain, according to Lu Bo, deputy director of Hefei Science and Technology Bureau.

According to Lu Bo, to encourage innovation, Hefei has implemented an initiative for enterprises to publish their specific R&D needs. Research teams compete to "take on the challenge" by the enterprises, with successful projects eligible for up to 10 million RMB in funding. This model helps companies reduce development costs.

In 2021, a team led by USTC professors Pan Jianwei and Xu Feihu achieved a global breakthrough in long-distance single-photon 3D imaging, pushing the range from 10 to over 200 kilometers. Based on this achievement, products —partly backed by the China Telecom Quantum Group — are now in active use.

"We participate in research with industrial needs in mind," said Lu Pin. "What once took over a decade to commercialize now takes just three to five years."

Funding the future, enabling applications

While innovation is critical, industry growth also hinges on capital and real-world application scenarios.

"Products are like seeds. For them to grow into industries, they need fertile soil and careful nurturing," said Lu Bo.

Hefei Unitary Quantum, an ion-trap quantum computing company, needed 30 million RMB in funding but had just two million RMB. Local investment institutions then stepped in with the full amount, enabling the company to deliver a working quantum computing prototype within a year.

As industries mature, application scenarios become vital. In 2023, the 220kV Houdian Quantum Demonstration Substation in Hefei went into operation — the first in China to integrate quantum measurement, communication, and computing, marking a milestone in the industrial application of quantum tech.

Today, there is a cluster of more than 30 leading quantum enterprises along Hefei's Yunfei Road, now nicknamed "Quantum Avenue." Citywide, the quantum industrial chain spans nearly 90 companies, forming a full-cycle ecosystem from basic research and technology development to engineering and commercialization.