"Second-tier cities", which include Tianjin, Chengdu, Chongqing, Hangzhou, Nanjing, Shenyang, Suzhou, Wuhan and Xi'an, are, like the Chinese metropolises, equipped with a well-developed infrastructure, international airports and interesting investment and business opportunities. In the meantime, a large number of foreign investors from various branches of industry have successfully settled here. Compared to the metropolises of Beijing, Shanghai, Guangzhou and Shenzhen, some of these locations are characterized by even lower costs for rents, electricity and labor as an investment location. In the meantime, a middle class with strong purchasing power has formed in China, which makes the "second-tier cities" attractive as sales markets.
In the long term, it can be expected that wage levels and living costs will rise in these cities as well. These cities are becoming increasingly attractive for qualified workers, which is why a decline in migration to the coastal regions can be expected.
|Country name:||People's Republic of China (zhong hua ren min gong he guo)|
|Size of the country:||approx. 9.6 million square kilometres (over 26 times larger than Germany)|
|Population:||approx. 1.4 billion (2019)|
|Nationalities:||56 nationalities, 92% Han Chinese; 8% national minorities, consisting of 55 groups|
|Official language:||Mandarin/ Beijing dialect (pu tong hua)|
WU: mainly spoken in Shanghai, Zhejiang and Jiangsu
YUE: Cantonese, spoken mainly in Hong Kong, Macau and Guangdong (Canton)
MIN: spoken mainly in Fujian and Hainan provinces and partly in Taiwan
JIN: spoken mainly in Shanxi and Inner Mongolia
|Form of State/Government:||Socialist People's Republic|
|Government party:||Communist Party of the People's Republic of China (CCP)|
|Parliament:||One-chamber parliament: National People's Congress (NPC)|
|Prime Minister:||Li, Keqiang|
|Foreign Minister:||Wang, Yi|
|22/23 Chinese provinces:||22 provinces (23 provinces including Taiwan)|
|4 Cities directly under government control:||
Beijing (approx. 21 million inhabitants)
Chongqing (approx. 29 million inhabitants)
Shanghai (approx. 24 million inhabitants)
Tianjin (approx. 15 million inhabitants)
|2 special administrative zones:||
Hong Kong (approx. 7 million inhabitants)
Macao (approx. 600,000 inhabitants)
|5 Autonomous areas:||Guangxi, Inner Mongolei, Ningxia, Tibet und Xinjiang|
Tianjin is one of the major port and industrial cities in China. With about 15 million inhabitants it is the third largest city in China. Located about 120 km southeast of Beijing, Tianjin is easily accessible within 30 minutes by high-speed train. Tianjin is one of the four cities in China that are directly under the central government in Beijing and thus have the same status as a province.
|Area:||11,919.70 square kilometres|
|Population:||About 15 million inhabitants|
|Universities of Applied Sciences:||132 (incl. Beijing)|
|Graduates:||100,000 per year|
|Engineers:||Approx. 2,000,000 (registered)|
On April 20, 2015, the Tianjin Port Free Trade Zone was approved by the central government as a pilot free trade zone. There are 18 free trade zones (as of 2019) in China. The Tianjin Port Free Trade Zone is one of the important zones in China. The Tianjin Port Free Trade Zone includes the following existing free trade zones, which are all located in Tianjin/Port, Airport and Seaport:
The Tianjin Port Free Zone has a good geographical location and is close to the city center, airport and port. The Tianjin Port Free Trade Zone focuses on the development of aerospace, automotive, machinery and equipment, logistics and financial services. Here, foreign investors are supported with subsidies depending on the total investment amount (share capital), tax revenues, employment and industry sectors, in order to facilitate the establishment of a trading and production company in China.
Hint: Financial support through, for example, tax breaks and many other advantages for investors are often the result of individual negotiations with the local authorities (case by case). Good preparation and advice can pay off here.
Head of bdp Invest Tianjin Desk