The lab was located there because the wet markets and local bat population have been a historical epicenter of respiratory diseases.
- Shi Zhengli
The reason the wet market theory came to prominence was because commerce seemed like a reasonable explanation for how a novel coronavirus showed up so far away from its known animal reservoir (bats).
The reason the WIV is in Wuhan is the same as the reason why the CDC is in Atlanta or whatever -- Wuhan is a major city and it has things in it.
https://www.nature.com/articles/s41598-021-91470-2
Coincidentally, my sister lived in Wuhan for 3 years. Prior to 2020, I had to explain its location to people here in the US, but that is no longer the case!