China Continues to Steam Ahead Despite Global Uncertainty

Although exporters in places like Guangdong are beginning to feel the impact of rising volatility in the global economy, gross fixed investment numbers remain strong across the country. Local governments in Chongqing, Hubei, Sichuan, and Zhejiang continue to invest heavily in infrastructure projects in an effort to outdo one another and boost their attractiveness to potential investors.

Chongqing: Government commitment to increase Chongqing’s commercial attractiveness will continue to bolster its position with foreign investors
Fujian: Xiamen may offer significant opportunities for multinationals looking to tap into China’s growing software and IT industries
Guangdong: While retail sales remain strong, a slowdown in demand can be expected as Guangdong is heavily dependent on foreign trade
Henan: A flurry of Korean investments foreshadows the growth potential of Henan as a manufacturing hub in inland China
Hubei: Hubei’s infrastructure investments will allow it to strengthen its position within inland China and continue to attract foreign investments
Hunan: Companies whose products contain rate earths should explore whether they can benefit from a plan to establish a new industrial cluster
Jiangsu: Suzhou should continue to thrive as a trading hub due to the strength of its industrial base, FDI, and government support
Jiangxi: Government efforts to curb electricity consumption amid a national drive for energy savings and efficiency will increase costs for companies
Liaoning: Liaoning will continue to strengthen its logistical infrastructure as it aims to position itself as the “Gateway to North East Asia”
Shandong: Jinan’s strategic investment into the high-tech industry will allow it to create a competitive advantage in the manufacturing industry
Sichuan: Sichuan will see strong growth as it embarks on a large infrastructural improvements while also seeing investments from multinationals
Tianjin: Tianjin will continue to remain a favorite for investors due to its growing local wealth and strong industrial development programs
Zhejiang: Zhejiang can expect strong growth as SMEs are given more support and the government continues to make strategic investments