Thursday, 4 September 2014

How to choose a right place to invest in China?

China, with a population of over 1.35 billion, covering approximately 9.6 million square kilometers, is the world's second-largest country by land area. Mainland China has around 661 cities in all while 99% of the foreign clients are only familiar with several huge cities like Beijing, Shanghai, Guangzhou and Shenzhen etc. 

Some investors take it for granted that big cities are their first choice when comes to the selection of investment destinations in China. However, you can benefit much more after you study the market and industry clusters in China.

Generally speaking, big cities have better infrastructures and living conditions, if you only headquarter your company or set up a trade company, then you can choose Beijing, Shanghai, Guangzhou or Shenzhen etc. Beijing, Shanghai and Guangzhou are old trade centers in China but Shenzhen, Yiwu, Wuhan, Xiamen, Chengdu, Changsha etc are also very popular now in China. Only in Yiwu city, there are more than 50000 foreigners living and doing business there at present. If you engage in manufacturing, the best investment destination should be the right manufacturing base for your product in China.

Which city is the best one for you to invest?

First of all, you’d better do a small market survey to find out the right manufacturing base in China. No matter what industries or sectors you will invest in, you can choose a right place to start, not necessarily in the biggest city in China, say, if you’re a firework businessman, you’d better invest and live in Liuyang city, the so-called ‘home of fireworks’, where there are more than 400000 people directly or indirectly engaged in this product in China. In Zhejiang, almost every town has their pillar industries in China. In this case, do not forget to do a market survey first or hire a professional business consultant from STIN ( to learn more resource information first before you invest anything in China. Local experts can save you lot of time, cost and energy etc in doing business in China. .

Second, you’d better investigate and look into local investment policies in person.

China has 31 provincial-level areas and 661 cities but each city has their own favorable policies in order to attract foreign investors, so the investor has to go and meet local government organs and officials in person to compare their investment policies in China. 

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