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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 216

China Business Intelligence No. 216

Samsung Economic Research Institute Beijing Office

Sept. 18, 2012

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China's regional economic growth in the first half of this year has shown a 'high west, low east' trend. The reasons behind the sluggish growth of the eastern region can be found with the decline in overseas demand and the relocation of industries whilst. The eastern coastal areas, in particular, are in desperate need of a strategic shift as the existing manufacturing model has reached its limitations with the rise in production elements. In contrast, the mid-western region is attracting large-scale export-oriented companies by further opening up its markets to the world. Furthermore, the marked price hikes in resources including labor and land in coastal areas like Shandong, Jiangsu and Canton have forced exports companies to relocate to the mid-west.

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