In 2000, China surpassed the United States as the largest recipient of foreign investment. A growing economy, thriving capital markets, and a favorable business environment provide ideal opportunities for investing in China.
In this article, we will take a look at the top ten cities that are the best places for foreign investors to do business in China.
Shanghai
Shanghai is ranked as the best city to invest in China, according to the FDI Intelligence 2017/18 report. The city is ranked as the fifth best city to invest in the Asia-Pacific region. It has become one of the most progressive cities in the world when it comes to creating investment opportunities. This is why most foreign investors prefer to do business in China.
Shanghai, also known as “Shen”, received foreign investment in its free trade zone of about six billion dollars last year, an increase of 6%. The city is an international port and contributes the most to the Chinese economy. The city’s most important sectors include:
- Transportation
- Economy
- Science and Technology
- Exhibition
- Trade
- Shipping Center
One of the largest auto shows in Asia takes place in Shanghai. In addition, an interactive entertainment expo is held in the city every year. The expo has the same status as the E3 Expo in the United States and the Tokyo Game Show in Japan.
By 2020, the city envisions itself to be the world’s premier destination for finance, trade, and transportation. Among other incentives, the city has abolished the minimum capital requirement for registration in order to establish a company in the free trade zone. Furthermore, under the free trade zone, international investors are not required to contribute capital within two years of establishing a foreign-invested enterprise (FIE).
Guangzhou
Another famous port city that is the best place to invest in China is Guangzhou. Also known as the Ram City, Guangzhou offers a lot of investment opportunities for investors.
For the past two millennia, the city has remained the financial, political, and cultural center of China. Today, the city is known as the “Millennium Commercial Capital” due to being one of the centers of trade, commerce, finance, and transportation in China. It attracts a large number of global investors due to its attractive investment environment.
Guangzhou has developed an industrial chain with ten major sectors. These include:
- Fine chemicals
- Trade fair
- Automobile manufacturing
- Modern logistics
- Financial
- Information technology
- New materials
- Biological medicine
- Environmental protection
- New energy
You can invest in the above industries by setting up a business in China. Consider partnering with a local company to invest in China in any of these industries. The city has a highly educated workforce with 2.88 million people holding college degrees and over 1.41 million with managerial and technical experience.
The Guangdong Free Trade Zone was established to encourage foreign investment in China. The free trade zone has introduced a number of incentives for foreign investors to invest in China. Some of the investment incentives include support for financial exchange, cross-border RMB, trade, logistics and shipping, and government services.
After the introduction of trade reforms in Guangzhou, the city has attracted a lot of foreign investment. Foreign trade is booming in the region while the economy has grown significantly at a rate of 13 percent annually. AnExport Fair, known as China Import and Export Fair, is held in the city every autumn and spring. Also known as the Canton Fair, it is one of the longest and largest fairs in the world.
Beijing
The capital city of Beijing is also a great place to invest in China. The city is the country’s political, scientific, educational and cultural center and is home to the official seat of the Chinese government.
Beijing is one of the most dynamic and competitive regions in the world. The city is the prime investment destination in China due to its world-class and cohesive transportation and communications infrastructure. The city is connected to all major regions in China. Employers will find it easy to find qualified professionals as it is the most educated region in the country.
The city’s administration gives preferential treatment to foreign investors. It is the main recipient of regional development strategies and is the center of the Bohai Economic Rim, an economic region consisting of Beijing, Hebei, Tianjin, Shanxi, the Shandong Peninsula and parts of Inner Mongolia. Its geographical advantage includes land location, international shipping routes and natural resources.
Beijing is also the country’s financial and commercial center. The city has seen rapid development in the past few years. Today, it accounts for about 40 percent of financial clearance business and 60 percent of financial assets.
The city has three state-level trade zones and 16 industrial zones with different industrial functions that cater to overseas investors. State-level zones include the Beijing Tianzhu Free Trade Zone and the Beijing Economic and Technological Development Zone. These zones are home to many foreign-owned enterprises in China.
Wuhan
Wuhan is a central base for industry and education in China with a well-developed transportation infrastructure. It is one of the top-ranked metropolises for investment in China. With a population of over 10 million, it is the largest city in central China. The city has been ranked as one of the most dynamic cities in the context of investment opportunities similar to Shanghai, Shenzhen and Beijing.
Global conglomerates and startups alike have recognized the city as a thriving and attractive economy and are investing heavily in the region. Innovation and economic development have been driven by a mix of industry and academia. The city provides access to R&D resources that will derive innovation. The city’s urbanism coupled with efficient transportation networks including high-speed rail services provide specific advantages for investors to invest in China.
- Hangzhou
Another great place to invest in China is Hangzhou. The capital of Zhejiang Province is the country’s economic, scientific, political, transportation, media, and financial center. Moreover, it is the key point of the urban economic center.
In addition to hosting the China International Cartoon and Animation Festival and the International Small Film Expo, Hangzhou also hosts the World Entertainment Expo every year. With a population of about 9.46 million, Hangzhou offers a lot of investment opportunities for investors in China. The city’s economy has undergone a major transformation after opening up to foreign trade in 1992. The city is an important logistics and manufacturing center.
- Shenzhen
Also known as Ping City, Shenzhen is also another great place to invest in China. The city is one of the top countries to invest in due to its favorable investment climate. The city’s special economic zone creates incentives for investors to do business in China.
