|Big Opportunities for China's 3rd-Tier Cities|
|by Tom McGregor||Mon, Feb 4, 2013, 10:01 PM|
BEIJING: China has become the new land of opportunity for global investors in the 21st Century. Nevertheless, the 1st-tier cities of Beijing, Shanghai and Shenzhen appear to have entered an over-development stage. Local property prices have surged to exorbitant heights, business competition has turned too fierce, and the cost of living has risen too high for China’s top cities.
Meanwhile, the nation’s 2nd-tier cities, including Xian, Qingdao and Wuhan, are about to become over-developed as well. Yes, opportunities still exist, but perhaps that would be not for long.
Hence, prime-time opportunities have transferred over to China’s 3rd-tier cities, where investors could buy up real estate, open new shops and factories at relatively low costs along with the potential to generate substantial profits in local markets that are enjoying greater prosperity.
Companies hoping to expand their business operations in China should consider casting their eyes on these newly-emerging metropolises that could later arise as 2nd or 1st-tier cities.
I discovered rich potential for Western China after taking a recent trip. The UC Foundation, a charity group based in Beijing that focuses on education projects, invited me to visit the Tunliu Sun Weigang Teaching Ethics Demonstration Middle School in Tunliu County, Shanxi Province.
Before arriving at the City of Changzu Airport, I anticipated to observe a primitive rural village that is facing the grips of overwhelming poverty. However, my pre-conceived notions were quickly dispelled after the plane landed. The coal industry stands as the economic engine of Tunliu County, which has brought more wealth to the local community.
To read the entire article from SINA English News, link here:
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