Guide to Setting Up Business in Nantong, China

Introduction

Nantong is a strategically located city in China’s Yangtze River Delta, near Shanghai, that offers a highly attractive environment for businesses looking to expand in China and beyond. Known for its robust industrial base, advanced infrastructure, and strong focus on sustainability, Nantong has established itself as a hub for sectors like manufacturing, renewable energy, biopharmaceuticals, shipbuilding, monopiles and logistics. The city’s global business presence, supported by favorable policies and an open economic environment, positions it as an ideal choice for international investors.

Additionally, Nantong’s partnership with Vejle Kommune Denmark, in cooperation with the Vejle - China Business Center exemplifies the city’s commitment to fostering international cooperation and economic development. This partnership bridges Danish and Chinese interests in sustainable urban planning, green technologies, and business collaboration, enriching both Nantong and Vejle Kommune through shared knowledge and resources.

1. Strategic Business Environment in Nantong

Nantong offers numerous strategic advantages for businesses considering investment:

• Prime Location and Connectivity: Nantong’s proximity to Shanghai, coupled with its integration into the Yangtze River Delta, provides businesses with unparalleled access to major domestic and international markets. The city’s extensive transport infrastructure, including ports, highways, and high-speed rail, facilitates efficient logistics and trade operations.
• Industrial Strengths and Sectoral Focus: Nantong boasts a thriving industrial base with strengths in marine engineering, advanced manufacturing, textiles, and renewable energy. The city has developed specialized industrial parks and clusters that offer cost-effective infrastructure and services to businesses, enhancing their operational efficiency.
• Supportive Business Policies: The local government in Nantong fosters a pro-business environment through streamlined administrative processes, fiscal incentives, and land-use policies. This supportive framework ensures businesses can establish and expand operations with ease, minimizing bureaucratic hurdles.
• Innovation and Skilled Workforce: Nantong’s educational institutions and vocational training centers produce a skilled workforce aligned with the city’s key industries. Furthermore, Nantong promotes research and development through incentives, partnerships with universities, and industry collaborations, driving innovation in sectors like biopharmaceuticals, environmental management, and technology.
• Commitment to Sustainability: Nantong prioritizes sustainable growth, with policies aimed at reducing carbon emissions, supporting renewable energy, and promoting eco-friendly business practices. This commitment aligns with global trends in environmental consciousness and attracts businesses focused on green technology.
• Quality Infrastructure: Nantong has made significant investments in infrastructure, including world-class ports, logistics hubs, and high-tech industrial parks. Nantong’s port is among China’s largest, providing a strategic advantage for import-export activities crucial for global businesses.
• High Quality of Life: Nantong offers a modern urban environment with healthcare, educational facilities, and recreational spaces. This focus on quality of life not only supports residents but also aids in attracting and retaining skilled professionals.
• Access to Shanghai Free Trade Zone: Nantong’s proximity to the Shanghai Free Trade Zone (FTZ) allows businesses to benefit from tax incentives, streamlined import-export processes, and other favorable policies that support international trade and business expansion.

2. Global Business Presence in Nantong

Nantong has successfully attracted a diverse array of multinational companies from various sectors, highlighting the city’s appeal as a prime location for foreign investment. These companies are drawn to Nantong’s strategic location, skilled labor force, supportive policies, and advanced infrastructure, which together create an environment conducive to international business success. Below is a categorized list of prominent global enterprises with a presence in Nantong, showcasing the city’s economic diversity and international connectivity.

European Enterprises

1. Merck (Germany): A leading global healthcare and life sciences company, Merck provides pharmaceutical and chemical products. In Nantong, Merck focuses on healthcare solutions and production of life-saving medications, aligning with the city’s biopharmaceutical strengths.
2. BASF (Germany): BASF, one of the largest chemical producers in the world, operates in Nantong to supply high-quality chemicals for various industries, including automotive, construction, and agriculture.
3. Bayer (Germany): Known for its work in healthcare and agriculture, Bayer operates in Nantong to bring innovative solutions in pharmaceuticals and crop science, supporting regional agricultural development.
4. Symrise (Germany): A global leader in flavors and fragrances, Symrise’s Nantong facility supports the production of food additives and ingredients for personal care, enhancing Nantong’s status in the consumer goods industry.
5. Siegfried (Switzerland): Specializing in pharmaceutical manufacturing, Siegfried contributes to Nantong’s healthcare industry by producing active pharmaceutical ingredients (APIs) for global distribution.
6. Givaudan (Switzerland): As a key player in the flavor and fragrance industry, Givaudan’s presence in Nantong strengthens the region’s capabilities in high-value manufacturing, specifically for food and personal care sectors.
7. L’Oréal (France): The French beauty giant L'Oréal has operations in Nantong to produce cosmetics and skincare products, capitalizing on the city’s access to China’s fast-growing beauty market.
8. Air Liquide (France): A world leader in gases for industry and health, Air Liquide serves various manufacturing sectors in Nantong, supplying essential gases for industrial and medical applications.
9. Autoliv (Sweden): Autoliv, a global leader in automotive safety systems, has set up operations in Nantong to manufacture airbags, seatbelts, and other safety equipment, supplying both local and international markets.
10. SCANIA (Sweden): The Swedish heavy vehicle manufacturer produces trucks and engines in Nantong, catering to China's growing transportation and logistics needs.
11. IKEA (Sweden): The iconic furniture retailer IKEA has established logistics and supply operations in Nantong, taking advantage of the city’s proximity to major transport hubs for efficient distribution.
12. NXP (Netherlands): NXP is a Dutch semiconductor company that develops secure connectivity solutions for embedded applications. Its presence in Nantong supports the growing demand for electronics in automotive and industrial applications.
13. Selena Group (Poland): A global producer of construction chemicals, Selena supplies adhesives, foams, and sealants, leveraging Nantong’s strong manufacturing ecosystem to meet regional and global construction needs.
14. STIWA Group (Austria): Known for automation technology, STIWA operates in Nantong to deliver high-tech production and automation solutions, helping local manufacturers optimize their production processes.
15. Stanley Black & Decker (United Kingdom): This renowned tool manufacturer supplies tools and industrial solutions through its Nantong facility, serving the growing demand in the construction and DIY sectors.

Asian Enterprises

1. Kawasaki Heavy Industries (Japan): Kawasaki operates in Nantong, focusing on heavy machinery and equipment manufacturing for sectors such as construction, marine, and energy.
2. Toray Industries (Japan): A major producer of synthetic fibers and textiles, Toray’s Nantong operations serve both the apparel and industrial sectors, enhancing the city’s textile production capabilities.
3. Mitsubishi (Japan): Mitsubishi operates in Nantong, supplying advanced machinery and automation technology for automotive and manufacturing industries, furthering Nantong’s industrial strength.
4. Teijin (Japan): A global leader in advanced fibers, Teijin manufactures high-performance materials in Nantong, supporting industries like automotive, aerospace, and healthcare.
5. SK Group (South Korea): South Korea’s SK Group focuses on chemicals and materials in Nantong, supporting China’s tech and manufacturing sectors through high-quality products for electronics and automotive industries.
6. Hyosung (South Korea): Specializing in textiles and chemicals, Hyosung’s Nantong operations produce synthetic fibers and materials for apparel and industrial applications, bolstering Nantong’s position in textiles.
7. Keppel Corporation (Singapore): A leader in marine and infrastructure services, Keppel operates in Nantong to supply specialized vessels, offshore platforms, and urban solutions, capitalizing on Nantong’s strong port facilities.
8. RGE Group (Indonesia): As a major player in pulp and paper, RGE Group’s Nantong facility focuses on sustainable production methods and supplies paper products to the growing Chinese market.
9. Cipla (India): A major pharmaceutical company, Cipla’s Nantong operations enhance the city’s healthcare sector, producing affordable and accessible medicines for Chinese and global markets.

American Enterprises

1. Celanese (United States): A global leader in specialty materials, Celanese supplies polymers and chemicals from its Nantong plant to various industries, including automotive, electronics, and healthcare.
2. Cargill (United States): One of the largest food and agriculture companies, Cargill operates in Nantong to provide agricultural products, supporting China’s food production and processing industries.
3. Tyson Foods (United States): Known for poultry and meat processing, Tyson Foods leverages Nantong’s logistics to efficiently distribute food products across China’s consumer markets.
4. Sherwin-Williams (United States): A leading manufacturer of paints and coatings, Sherwin-Williams supplies protective and decorative coatings through its Nantong facility, supporting local manufacturing and construction sectors.
5. Westinghouse Electric (United States): Focused on nuclear energy solutions, Westinghouse’s presence in Nantong supports China’s energy sector by providing nuclear technology and services to power plant operators.
6. Amphenol (United States): A major electronics connector manufacturer, Amphenol operates in Nantong to serve automotive and industrial technology markets with specialized connectivity solutions.
7. APTIV (United States): A global technology company in autonomous driving and connectivity, APTIV’s Nantong operations focus on developing advanced automotive components for the Chinese market.
8. Melaleuca (United States): This health and wellness company supplies natural and sustainable products, including dietary supplements and eco-friendly cleaning solutions, to meet the demand for green consumer products in China.

China (Hong Kong, Macao, and Taiwan) Funded Enterprises

1. Nan Ya Plastics (Taiwan): Specializing in petrochemicals and synthetic resins, Nan Ya Plastics provides materials for various applications, including electronics, construction, and consumer goods.
2. Unitech Electronics (Taiwan): A producer of electronic components, Unitech supports the electronics manufacturing ecosystem in Nantong, serving markets in mobile and computing devices.
3. Aurora Group (Taiwan): Focused on office equipment and solutions, Aurora supplies high-quality furniture and electronics through its Nantong facility, catering to business and consumer needs.
4. Giant Bicycles (Taiwan): One of the world’s largest bicycle manufacturers, Giant uses Nantong as a strategic production site to supply both local and international markets with high-quality bicycles.
5. Kinpo Electronics (Taiwan): A leader in electronics manufacturing, Kinpo supplies a range of consumer electronics from its Nantong operations, including mobile devices, printers, and industrial components.

Mainland Enterprises

1. COSCO (China): A global leader in shipping and logistics, COSCO operates in Nantong to manage and transport goods through China’s extensive maritime networks.
2. China Merchants Group (China): A diversified conglomerate, China Merchants Group supports logistics, real estate, and finance sectors, leveraging Nantong’s strategic port location for trade facilitation.
3. China Resources (China): Known for its investments in utilities and energy, China Resources focuses on green energy solutions in Nantong, contributing to sustainable urban development.
4. JD.com (China): One of China’s largest e-commerce companies, JD.com operates logistics and supply chain solutions in Nantong, facilitating rapid delivery services and supporting e-commerce expansion.
5. SANY Group (China): A major player in heavy machinery, SANY manufactures construction and mining equipment in Nantong, catering to infrastructure and development needs across China.
6. Luxshare Precision (China): A leading electronics components provider, Luxshare supplies connectors and precision components to support the automotive, telecommunications, and consumer electronics industries.
7. Tongwei Group (China): Specializing in aquaculture and solar energy, Tongwei leverages Nantong’s agricultural and energy sectors to promote sustainable food production and renewable energy solutions.
8. Han’s Laser (China): A leading provider of laser solutions, Han’s Laser operates in Nantong to supply laser equipment for industrial applications, enhancing manufacturing capabilities in the region.

Summary on global business presence in Nantong

The global business presence in Nantong demonstrates the city’s ability to attract and retain leading companies across a diverse array of industries, from pharmaceuticals and chemicals to electronics and heavy machinery. These multinational corporations not only contribute to Nantong’s economy but also bring advanced technologies, best practices, and innovation, elevating the city’s industrial capabilities. This wide-ranging international investment reinforces Nantong’s position as a critical hub in China’s economic landscape and a vital gateway for global businesses seeking opportunities in the Asia-Pacific region.

3. Sister City Relationship between Nantong and Vejle

The sister city relationship between Nantong and Vejle Kommune , Denmark, serves as a cornerstone of international cooperation, fostering economic, cultural, and environmental exchange. Established with the goal of promoting mutual development and understanding, this partnership has been instrumental in aligning the strengths of both cities.

• Economic and Industrial Cooperation: Nantong and Vejle Kommune collaborate across industries in which both cities excel. Renewable energy and environmental solutions are key areas of focus, with joint ventures in wind energy and green technologies. This cooperation allows both cities to leverage each other’s expertise, particularly in sectors like sustainable manufacturing, waste management, and renewable energy.
• Cultural and Social Exchange: Cultural exchanges and people-to-people ties are central to the sister city relationship. Programs such as student exchanges, joint festivals, and official delegations have strengthened social bonds and promoted cultural understanding, enriching the communities in both cities.
• Environmental and Sustainable Development Initiatives: Both cities share a strong commitment to sustainability. Vejle’s experience in climate adaptation and flood management has provided valuable insights to Nantong, a coastal city facing similar environmental challenges. Collaborative projects in waste management, green energy, and eco-friendly urban planning continue to build resilience in both cities.
• Educational and Knowledge Exchange: Educational institutions in Nantong and Vejle Kommune engage in joint academic projects, workshops, and research initiatives, particularly in fields aligned with industrial innovation and sustainability. These exchanges foster knowledge sharing and support industry-academia partnerships, fueling economic growth and technological advancement in both cities.
• Future Vision: The cities plan to deepen their relationship by expanding cooperation in high-tech industries, digital transformation, and sustainable urban development. Through this evolving partnership, Nantong and Vejle exemplify the benefits of international collaboration in fostering economic growth, environmental stewardship, and cultural exchange.

4. Vejle - China Business Center : Strengthening Connections Between Vejle Kommune and Nantong

Vejle - China Business Center is a key institution supporting the sister city relationship between Nantong and Vejle Kommune. It plays a vital role in bridging Danish and Chinese businesses, fostering partnerships, and facilitating economic and cultural exchange.

• Role and Mission: The Vejle - China Business Center serves as a liaison for Danish and Chinese businesses, providing resources, connections, and market insights that help Danish companies enter the Chinese market and vice versa. Its mission is to promote sustainable business practices, foster innovation, and support economic growth in both Vejle and Nantong.
• Support for Danish Businesses: The Business Center offers strategic advice, regulatory insights, and market entry support to Danish companies looking to expand into Nantong. By leveraging its knowledge of Chinese business practices and local regulations, the Center ensures that Danish businesses can establish and grow in Nantong with confidence.
• Collaboration with Vejle Kommune : Vejle - China Business Center Center works closely with Vejle Kommune to align business development goals and policy initiatives, ensuring that Danish companies in Nantong operate in alignment with Danish values and sustainability principles. This collaboration supports a responsible and ethical business approach, which resonates with both cities’ commitment to environmental sustainability.
• Facilitating Knowledge Exchange: The Vejle - China Business Center also facilitates knowledge exchange in areas such as renewable energy, advanced manufacturing, and green urban development. Through workshops, seminars, and networking events, the Center brings together experts from both cities to share insights, fostering a collaborative environment for innovation.
• Long-term Vision: Looking ahead, the Vejle - China Business Center aims to deepen the economic and cultural ties between Nantong and Vejle Kommune, expanding its support to new industries and furthering the goals of the sister city partnership. This commitment underscores the strategic importance of Nantong as a gateway for Danish companies into the Chinese market, while also enriching Nantong’s own industrial and cultural landscape through Danish expertise.

Conclusion

Nantong stands out as a premier destination for international business, offering a combination of strategic location, robust infrastructure, skilled workforce, and a commitment to sustainability. The city’s relationship with Vejle, Denmark, through the Vejle - China Business Center , serves as a model of international collaboration, facilitating valuable exchange in economic, environmental, and cultural spheres. Together, Nantong and Vejle are not only building an economically prosperous future but also setting a global example in sustainable urban development and cross-cultural partnership.

By choosing to invest in Nantong, businesses can become part of a dynamic and supportive ecosystem with access to China’s burgeoning market and the opportunity to engage in meaningful international partnerships.

Disclaimer

This document provides general information about Nantong's business environment and does not constitute legal, financial, or investment advice. While efforts have been made to ensure the accuracy of the information, details may change over time due to evolving policies, market conditions, or other factors. Readers can contact Vejle - China Business Center to obtain the most current and applicable information for their specific needs. No liability is assumed for decisions made based on this information.

Kjeld Friis Munkholm Associate Parter at Vejle - China Business Center

www.munkholmconsulting.com

? 2024 Kjeld Friis Munkholm. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means without the prior written permission of the author. transmitted in any form or by any means without the prior written permission of the author.