5 areas to visit for your business trip in China
China's designation as the "World's Manufacturing Hub" results from its modernized reforms and policies. It has also become known as the "Technology and Innovation Center." The country's enhanced product quality and variety attract importers globally.
This guide provides critical details to help you select the right city for your business and identify desired products.
Our article categorizes five cities based on economic growth, infrastructure, and future planning. This invaluable resource identifies cities with the highest potential for business investment, reflecting China's remarkable economic renaissance over the past four decades.
1) Shanghai
Shanghai consistently ranks among the best cities for business in China. As the country's most populous city and favorite among expats, it boasts the largest and busiest metro system and the world's busiest container port.
Shanghai is a magnet for top talent from across China and the globe, with the highest population of foreigners in the country. During the COVID-19 pandemic, many college-educated Chinese who had studied and lived abroad moved to Shanghai, enhancing its talent pool.
Strategically located at the mouth of the Yangtze River Delta, midway between Beijing and the Pearl River Delta (Guangzhou, Shenzhen, and Hong Kong), Shanghai benefits from China's extensive railway network and multiple airports, making it an ideal hub for travel within China, East Asia, and Southeast Asia.
Shanghai ranks as the best city for investing in China according to FDI Intelligence’s 2019 report, and the fifth best in the Asia-Pacific region.
The city has eased business regulations, such as canceling the requirement for minimum registration capital in the free trade zone and allowing international investors to defer capital contributions for two years after setting up a foreign-invested enterprise.
?The city is an international port and contributes the most to the Chinese economy.
The most important sectors in the city include:
2) Suzhou - Hangzhou
Suzhou boasts China's second-largest manufacturing sector, focusing on iron and steel, IT, electronics, and textiles. The city’s well-developed service sector, particularly tourism, significantly contributes to its revenue.
For businesses in circuit boards, Suzhou is ideal. The city, supported by government initiatives, is a hub for IT manufacturing, housing many renowned companies.
Suzhou's rich history in silk production makes it a global leader in textile manufacturing. The city is renowned for its fine materials, craftsmanship, and detailed designs, making it a key sourcing location for apparel.
Suzhou's proximity to Shanghai and integration with the Suzhou Industrial Park and Changshu Economic and Technological Development Zones make it a prime spot for both domestic and international manufacturers.
Hangzhou, the capital of Jiangsu, is just two hours by rail from Shanghai in the Yangtze River Delta. Known as the headquarters of Alibaba and home to the picturesque West Lake, a UNESCO World Heritage site, Hangzhou is a major IT and science research hub. It attracts top domestic talent and is considered an emerging first-tier city, reflecting its rapid development and urbanization.
3) Shenzhen
Shenzhen, situated in Guangdong province within the Pearl River Delta, is less than an hour from Hong Kong. Often dubbed the "Silicon Valley of China," it is the country's most high-tech and affluent city (per capita) and boasts the youngest population, with an average age of 28. As the hardware capital of the world, Shenzhen is responsible for producing 90% of the world's electronics, making it arguably the best place globally to prototype and manufacture consumer electronics due to the abundance and proximity of custom-made and retail suppliers.
A major tech and financial hub, Shenzhen is home to some of the world's largest tech and banking companies, including Tencent, Huawei, DJI, BYD, China Merchants Bank, and Ping An Bank. It ranks as the fourth city worldwide with the most billionaires, following Beijing, Shanghai, and New York.
Before 1980, Shenzhen was a small village near Hong Kong. That year, the CPC designated it as China’s first Special Economic Zone, leading to a rapid influx of population and direct investment. Being a modern city, Shenzhen boasts contemporary infrastructure and efficient transportation systems.
4) Guangzhou
Also known as Canton, Guangzhou boasts over 2,200 years of history as the terminus of the ancient Silk Road. While Cantonese is the primary language, many locals also speak Mandarin. As the capital of Guangdong, China's most populous and urbanized province, Guangzhou is a cultural hub with a significant foreign population from Africa, Southeast Asia, the Middle East, and Eastern Europe.
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The city hosts the Canton Fair, the world's largest trade fair, held twice a year. In 2019, it attracted 200,000 visitors and generated over $30 billion in trade, reinforcing Guangzhou's role as a premier location for commerce.
Guangzhou is known as the Millennium Business Capital, being a key center for commerce, trade, finance, and transportation. It attracts global investors with its favorable business environment.
The region, known as Guangdong, is renowned globally for its immense manufacturing hub, which drives a significant portion of China's industrial output. Guangdong is a powerhouse of production, specializing in electronics, textiles, automotive, and various high-tech industries. This manufacturing prowess makes it a critical player in global supply chains, attracting international businesses and investors seeking to leverage its advanced infrastructure, skilled labor force, and strategic location for efficient production and distribution.
Key industries in Guangzhou include:
The Guangdong Free Trade Zone promotes foreign investment with incentives for financial exchange, cross-border renminbi business, trade, and logistics. Since implementing trade reforms, Guangzhou's economy has grown by 13% annually, making it a top destination for investment.
5) Chengdu – Chongqing
Geographically, Chongqing serves as a gateway to China's western hub. It is twelve times the size of Shanghai, yet land prices in Chongqing are significantly lower than in coastal cities.
Under the “Belt and Road” initiative and the “New International Land-Sea Trade Corridor under the China-Singapore (Chongqing) Demonstration” initiatives, Chongqing is set to strengthen its strategic role as a shipping center and national logistics hub.
Transporting goods between Chongqing and Europe takes approximately 12 days, enhancing its appeal as a financial hub in the upper reaches of the Yangtze River, with significant potential for foreign investment.
Chengdu, the capital of Sichuan Province, is the third-largest luxury market in China after Shanghai and Beijing.
Many high-profile luxury brands have opened their first flagship stores at Chengdu IFS and Taikoo Li. According to Jing Daily's April 2019 report, these malls have achieved double-digit growth in both sales and rentals each year. Chengdu's cozy and laid-back culture makes it a unique place for luxury consumption.
Chengdu excels in various other industries as well. Known for its panda sanctuaries, Chengdu is centrally located, just 2 hours from Chongqing, making this two-city hub the uncontested business center of western and inner China. Chengdu is considered 1st tier city since 2024 and it is the fastest-growing city economically in China at the moment.
Conclusion
Tier 1 cities like Shanghai, Guangzhou, and Shenzhen are business powerhouses.
They offer competitive environments, enhance brand reputation, and provide access to vast consumer markets, skilled workforces, and numerous networking opportunities.
These cities are also finance and investment hubs, making it easier to secure funding and establish global connections.
Choosing the right city is crucial for your business’s success. With their supportive policies and incentives, first-tier cities foster innovation and visibility. Their rich cultural and lifestyle amenities attract top talent, ensuring long-term success.
Given the improved quality and variety of products, which city would you choose to start your business and import products from China?
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Business consulting since 1993. We do everything so that our clients can do business in Austria
4 个月Thx. I will keep it in mind for my next business trip to China. Warm greetings from Austria