Test-rides of China's first commercial driverless shuttle bus Apolong, co-developed by tech giant Baidu and automaker Kinglong, were offered to the public during the event.

With no steering wheel or driver, the vehicle made perfect turns and was able to give way to pedestrians during a two-minute drive on a 600-meter-long route.

Digitalization, networking, and the application of intelligent technology, are also modernizing China's governance system and capacity.

No counters, no queues, no paperwork - in less than 10 minutes, Gao Pingping completed the registration of his business and obtained a license at a self-service registration machine in the city of Pingtan in Fujian.

The machine, connected to government data and supported by facial recognition technology, streamlines the application process and reduces the procedure from days to just minutes.

At the Alibaba exhibition booth, a big screen demonstrated how ambulances and fire engines in the east China city of Hangzhou avoid gridlock and all red lights turn green as they approach with the aid of "City Brain," an artificial intelligence platform aimed at improving city management.

The "brain" collects traffic and weather data, analyzes traffic flow, and adjusts traffic lights accordingly to ease traffic congestion.

Like Alibaba, several leading technology companies have rolled out "smart city" solutions.

However, progress is limited and there are several technological breakthroughs to be made, according to Guo Renzhong, member of the Chinese Academy of Engineering.

"For instance, existing information transmitting technology is not able to meet some requirements of smart cities," said Guo, adding, "outdated laws and regulations concerning access and use of government and citizens' information may also pose obstacles in the future."