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When selecting a site in China, copmanies should take into account that there are hundreds of national, state, provincial, and local zones that have been setup to attract foreign investment.
Many of these areas will offer infrastructure, incentrives, labor, and other qualitities so as to attract specific nvestment from specific indutries.
Therefore, when looking for an area to invest in, it is essential that copmanies take the time to analyze the difference options and availablilities.
Some things to take into account are:
- Size of facilitiy needed
- Whether the factory will produce for foreign or domestic market
- Labor Needs (skilled and unskilled)
- Location of supplier(s) and lead times
- Environmental (emmissions, chemicals, solid waste)
Of course there are dozens more conditions that companies should review, but the above will provide a good starting point when narrowing down the initial field.
For inland provinces, zones are typically located in the provincial capital, and are typically focused on Hi Technology and Industry investment rather than export related activities.
For many though, the most attractive offers now are coming from the West and Northeast as that central, provincial, and local governments are offering incentives to locate manufacturing there.
Partnering this with a trend of increasing domestic consumption and a higher quality of logistics support, and one should expect to see more companies taking advantage of the offers found inland.
When meeting with local officials and visiting sites, make sure and understand the environment and history of each zone. Who are the companies currently in the zone, what are the incentives, how long does licensing take, what options are there in terms on build to suite, how close are facilities to the port by rail and road, and what are the HR conditions in the area.
Some additional online resources include:
All Roads Lead To China Zone Map
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