A Tour of the Lesser Known Gems
廊坊 Langfang, Hebei Province
- Population: 4.3 million
- GDP: 179 billion
- GDP growth: 9.7%
- GDP per capita: RMB 41,600
- State-level development zones: 1
- Number of German companies: 11
- Pillar industries: auto parts, agricultural products processing, timber processing, furniture manufacturing, printing and packaging, electronics and information technology
Fiducia Analysis: With its perfect strategic location between Beijing and Tianjin, Langfang’s main draw-card is its easy accessibility. Intersected by a major highway and the future site for a Beijing-Shanghai High Speed Rail stop, the city is ideally situated for companies looking to access Northern China. With only 70km to Beijing International Airport and 110km from the port in Tianjin, foreign companies can benefit from the optimal infrastructure the city has to offer. Langfang is a printing hub, having absorbed most of the printing business from the surrounding areas. As part of the latest 5 year plan, the IT industry in Langfang is growing rapidly, attracting major Chinese players, such as BOE, Huawei, and ZTE.
Fiducia Project: WFOE incorporation for a major German automotive component company.
无锡 Wuxi, Jiangsu Province
- Population: 6.5 million
- GDP: 757 billion
- GDP growth: 10.1%
- GDP per capita: RMB 116,500
- State-level development zones: 3
- Number of German companies: 56
- Pillar industries: machinery, metallurgy, petrochemical industries, electronics and textiles
Fiducia Analysis: Wuxi is a booming third tier city in the densely populated region of the Yangtze River Delta. With a year-on-year GDP growth of over 10% in 2012, the city is a popular site for private investment in China. Over 80% of Wuxi’s added value comes from heavy industries, such as machinery. With its own regional airport and well-connected highway system, Wuxi is an ideal access point to several important cities in the region, including Shanghai, Nanjing, Suzhou and more. A large amount of foreign direct investment contributes to the rapid growth of the city, best exemplified by the 87 Fortune 500 enterprises that set up 157 projects here. 17% of the Jiangsu’s total tourism revenue comes from Wuxi, a city with substantial cultural and natural attractions.
Fiducia Project: Business plan and growth strategy development for a global rubber and plastic machinery manufacturer resulting in local product development.
惠州 Huizhou, Guangdong Province
- Population: 4.6 million
- GDP: 237 billion
- GDP growth: 12.6%
- GDP per capita: RMB 51,200
- State-level development zones: 3
- Number of German companies: 5
- Pillar industries: electronics, petrochemicals
Fiducia Analysis: Comprising one fourth of the land area of the Pearl River Delta, Huizhou offers a substantial advantage not only due to its proximity to Hong Kong, but also the first tier cities of Shenzhen and Guangzhou. With 3 universities and 39 vocational schools, Huizhou is a major source of talent in the region. As a primary sea port, the city is an export hub, with goods being shipped to Hong Kong, Japan, the US, the EU, South Korea and South East Asian countries every day. Huizhou is connected to China and Asia via high speed rail, major highways, and its port, with additional close proximity to several airports in the region. The Hong Kong investment giant Hutchison Whampoa established operations in this city.
Fiducia Project: Customer survey and analysis for a global market leader in the supply of plants, equipment, and services for various industries resulting in a revamp of the customer service structure.
How Fiducia can help
If you are interested in setting up in China’s third tier cities but are unsure where to start, here is how Fiducia can help you:
- Assess which city is ideal for your business model and industry
- Research competitors and current market
- Devise an optimal structure from a business, legal and tax perspective
- Set up all operations and legal entities
- Recruit key staff for your growth strategy
- Outsource accounting and payroll to keep your organisation lean
Email us at firstname.lastname@example.org for more information.