When expanding your business to China, the success you can get depends on a number of things, and one of them is the location. So, what are the best regions for doing business in China? Here is a breakdown.
In China, Shanghai stands out because it is the most populous city in the mainland. It also acts as an international hub of trade, innovation, finance, technology, and logistics.
When compared to other cities in China, Shanghai has the highest GDP that reached RMB 3.3 trillion in 2018, a mark that China considers a milestone. Notably, the city is slowly emerging as a global hub for the following industries:
- Fine steel.
- Electronic information.
- Equipment complex.
In Shanghai, the largest three sectors are retail, financial services, and wholesale and retail services. Shanghai is positioned adjacent to Jiangsu and Zhejiang provinces and is home to the famous Suzhou Industrial Park and Changshu Economic and Technological Development Zones that host most investors’ industries and warehouses.
The Shanghai Free Trade Zone
Shanghai, alongside Tianjin, Chongqing, and Beijing, are the main municipalities in China that fall under the central government. Therefore, they enjoy a lot of priorities on some policies, and they are the first priorities for most investors looking forward to doing business in China.
When China adopted the Reform and Opening-Up Policy, the first region to act as a core port for both international and domestic imports and exports was shanghai. This is one of the reasons why it has become a hub for global investments. In 2017, the China Shanghai Pilot Free Trade Zone (SHFTZ) foreign direct investments crossed seven billion.
Later in August 2019, the Shanghai Pilot FTZ was approved by the China State Council, allowing it to extend the boundary to Lingang New Area. As the area was extended, China added more tax incentives that continued drawing more investors. Today, the Shanghai Pilot FTZ still remains one of the best regions for doing business in China.
A Closer Look at the Shanghai Stock Exchange
It is worth mentioning that Shanghai is home to the two biggest stock exchanges in China, the famous Shanghai Stock Exchange, and the Shanghai Sci-Tech Innovation Board, known as the STAR Market. Note that the Shanghai Sci-Tech Innovation Board, known as STAR Market will be changed to China NASDAQ and is expected to form a platform for fundraising, helping innovations to get the funds they need for growth and success.
When you look at Chongqing, it is, geographically, the gateway to the western hinterland. It is also very large, about twelve times the size of Shanghai. However, the value of land is a lot cheaper than Shanghai, making it a great option for investors looking forward to doing business in China.
In 2018, the value of exports and imports of Chongqing grew and reached RMB 522.26 billion. This region is bubbling with potential and everything appears to be getting started. Through the “Belt and Road” and “New International Land-Sea Trade Corridor under the China-Singapore (Chongqing) Demonstration” initiatives, Chongqing seeks to reinforce its position as a global shipping hub. For example, it takes only 12 days to move cargo from Chongqing to Europe.
If you want your enterprise to succeed, the first step is selecting the right location. So, which region do you choose? Reach us on this website to learn more about the above regions and others, and we will help you pick the perfect location for your enterprise.