According to the newest statistics released by Beijing's Haidian district tax bureau, last year Zhongguancun, dubbed China's Silicon Valley, paid 5.9 billion in personal income tax, the most for any district in Beijing for the third consecutive year. Most of the newly affluent are intellectuals between 30 to 40 years old.

The strength of its real estate market is also testament to the area's economic power. Housing in the Huangjin area of Zhongguancun runs as high as 6,000 to 7,000 yuan per square meter. Around 80% of those who bought housing in that area are researchers at Zhongguancun's technology enterprises or research institutes.

Many enterprises are using contracts for projects and stock options to increase the salaries of their employees, and in turn, using the higher pay to attract talent.

China's science organizations have also increased the material gains of intellectuals. Recently, the Ministry of Education invested 1.8 billion yuan to both Peking University and Tsinghua University. One third of that money was used to raise the salaries of professors. Some professors receive an allowance of 100,000 yuan a year.

The Chinese government has established Zhongguancun as the base of China's high tech industry.