Eric Wolff, Commercial Consul at the US Consulate General in Chengdu, China, recently spoke in Newport Beach on the potential of ‘2nd tier and 3rd tier’ cities in China.
2nd tier cities of close to 10 million people each, such as Chengdu, Kunming, Nanjing and Wuhan have seen real annual economic growth exceeding 14% in recent year and they received almost 54%, or US$42 billion, of the US exports to China in 2005.
These cities have lower and, labor and energy costs than Beijing, Guangzhou and Shanghai. With streamlined bureaucracy, incentives and a strong desire to attract foreign companies the 2nd tier cities are more welcoming for new entrants into the China market.
