According to a study, the financial sector of China, Shanghai is said to have the best business environment for small and medium entities. Following Shanghai, there are Shenzhen, and Nanjing are among the list of Chinese cities that offer a good environment for the development of a business that is based on a comprehensive assessment. In this article, we will discuss 10 cities that are best for Chinese SME business development.
According to the study conducted by the Ministry of Industry and Information Technology at the first forum held on SMEs development environment, the capital of China, Beijing occupied the fifth place after Guangzhou while Dalian in Northeast China’s Liaoning province and Wuhan in Central China’s Hubei province grabbed the 31st and 19th position respectively.
According to that study, there are 9 Chinese cities in the top 10 list among those who are said to be providing a good business environment for SME in China 2021.
Based on data from local government reports 36 cities were chosen for the investigation. The investigations included field investigations, enterprise online surveys, third party tests, and published statistical data materials from the website of the government, authorized organizations, and media stations.
To gather detailed data, surveyors visited about 20 cities, spoke with more than 600 entities, and went through more than 400 websites for lakhs of pieces of information, said the Director of China Small and Medium-sized Enterprises Development Promotion Center, Shan Lipo.
The Chinese SME business development assessment includes five indicators that are of first levels: legal environment, market environment, innovation environment, financing environment, and policy environment. Along with these, there are more than 21 second level indicators and more 36 third level indicators.
So SME meaning Small and Medium sized Enterprises are an important part of the development of business and market scenario and have a close relationship with the business environment of the local cities. So learning about the business growth and development of SME will be vital to the success of such businesses.
Top 10 Cities Offering Best Chinese SME Business Development
The SME definition is mostly based on the number of employees which is less than 500 employees. But China has a complex SME meaning in business that completely depends on the category of the industry and is also based on the number of employees and also the annual revenue and total assets. So now let us have a look at the 10 best cities that provide Chinese SME business development.
- Shanghai: Among the list of SME in China, Shanghai has been termed as the “showpiece” of the booming economy of China. It is the most polished city in China having all types of SMEs and other businesses. The city is said to be the global center for innovation, and finance and a national center for trade, commerce, and transportation, having the world’s busiest container port—the Port of Shanghai.
- Shenzhen: Shenzhen was the first of the Special Economic Zones (SEZ) to be situated by general secretary Deng Xiaoping. Back in Apr 1979, Shenzhen was reconstructed as a Special Export Zone to formulate a favorable environment for investment and introduce technological advancement and management experience. This was later renamed to the Special Economic Zone in May 1980. Shenzhen consists of high-tech, logistics, finance, and cultural industries.
- Nanjing: The present economy of Nanjing is developed based on the past. Here the dominating industry is the service industry that accounts for around 60% of the total GDP of the city. Other than this, the other industries are the tourism industry, financial industry, and cultural industry.
- Guangzhou: Guangzhou is considered as the main manufacturing base of the Pearl River Delta, which is mainland China’s largest manufacturing and commercial region. The industry in this city includes Guangzhou Nansha Export Processing Zone, Guangzhou Free Trade Zone, and Guangzhou Science City.
- Beijing: Beijing is among the four most ancient cities of China, and constitutes 6 world class heritages and is also the city having the largest amount of cultural relics in the whole world. It is known to be the cultural center, political center, technological innovation center, and international exchange center of China.
- Hangzhou: Hangzhou witnessed a rapid development of its economy after 1992. This is an industrial city having varied sectors that are presently in operation such as textile, light industry, and agriculture. Along with that, it is also considered as an important hub for manufacturing and logistics for coastal China.
- Xiamen: Xiamen has a well developed and diverse economy. It is said to be the first city to refer to the Business development indexes of the World Bank has the aim to formulate the world’s first rated business environment. This city is known to provide both financial and developmental services.
- Chengdu: The state council of China regarded Chengdu as the nation’s western center of commerce, logistics, finance, technology, and science and also the hub for transportation and communication. It is also considered an important base for agriculture and manufacturing industries for small and medium sized businesses.
- Tianjin: Tianjin is regarded as one of the first state level technological and economic development zones. TEDA (Tianjin Economic Technological Development Area) was founded in December 1984. The Tianjin Port Free Trade Zone is the biggest free trade zone in China and is the only free trade zone in northern China. This post has fueled the development of many SME businesses.
- Zhejiang: The Zhejiang province is known to be one of the most vibrant places In China. Its growth was initiated by clustering of SMEs of the area into special industrial zones.