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cost of doing business in China city inland

Five years ago, China's Ministry of Commerce has created an impetus to foreign direct investment in central China, dubbed the "navigable Go" campaign.

Connected, but not to be confused with the "Go West" campaign launched in 2000 to spur development in the western provinces, the "navigable Go" campaign focuses on six central provinces: Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan. In total, these provinces cover an area of \u200b\u200b1,027,000 km square (11 per cent of the total area), and represent about 28 percent of the population and about 20 percent of GDP.

The Inland Go "campaign focuses on promoting foreign investment, as described in the 2009" Foreign Investment Promotion Plan for the Central China. " Priority areas include the economic belt along the Yangtze River and Beijing-Guangzhou Railway, the city identified by looking for each of the six provinces and areas closely related to the Yangtze River Delta, Pearl River Delta and Bohai Bay Rim. At launch the official campaign in 2009, exports combined in the central region represents only 4.3 percent of the national total, and manufacturing, energy and raw materials industries dominated.

land and labor costs, which typically eat about 70 percent of total operating costs, increased rates of break-neck, especially in the front row east coast and southern cities, like Beijing, Shanghai and Guangzhou. While prices in inner cities are on the rise as well, these cities are lower than those along the east coast.

For producers with limited budgets for overheads, promises of lower land and labor costs in the central provinces are very seductive. Many producers of big names are already in the region or transferred;. Hewlett-Packard and Cisco have bases in Chongqing, while the Intel assembly and testing facilities and research and development center of Motorola are located in Chengdu

Immediately after the introduction of the "Go Earth" campaign, got a magazine China Briefing look into the economics and opportunities of China's inland provinces to export-based SMEs (China Briefing Magazine, Volume VII - No. IX). In November 2006 his comment, Chris Devonshire-Ellis came to a general conclusion that, for the export-based SMEs, transport costs and more transactions in the inland waters of China has passed the savings of other costs (including costs of labor and land) operations in the region. More competition and better transport infrastructure are needed to make operations in the region a soft option.

halfway between the duration of the development plan of "navigable Go" campaign (2009-2014), we are once again returning to the campaign to ask a simple question for SMEs export-based, it makes sense economically "Go Inside" Today

For a more complete look at the inner, China Briefing? expands slightly beyond the six targeted provinces officially in the "navigable Go" campaign - Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan - slightly to the west to include the municipalities of Chongqing and Eastern-leaning capital of Sichuan, Chengdu. For each of these interior provinces, we look at the costs of locating in the provincial capital.