Tencent will build a center for tech startup in southwest China's Chongqing in partnership with the municipal government, the company said on Tuesday.

The 28,000 sq meter shop, located at the new north zone of Chongqing, can house up to 230 startups and will open this year.

Tencent has plans for 25 such ideas incubators across China.

The plan is part of a broader deal between Tencent and Chongqing to let the Internet play a more active role in regional economic growth.

Chinese Premier Li Keqiang has promised to encourage innovation from the grassroots with various forms of government support including funding and office space.

Tencent, Alibaba and Baidu are investing in a growing number of tech startups, necessary in the intense competition to stay ahead in China's internet sector.