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Top Ten Asian Cities For FDI in 2012. China Snares Three.

Posted in China Business

The Financial Times’ FDIintelligence site [subscription required] just came out with its list of the top ten Asian cities for Foreign Direct Investment (FDI) in 2012 and three China cities made the list: Hong Kong, Chengdu, and Guangzhou. This ranking is based on data and expert opinion used to rank cities with the best prospects for inbound investment, economic development and business expansion in the upcoming year.

Rank

City

Country

1

Singapore

Singapore

2

Melbourne

Australia

3

Hong Kong

China

4

Brisbane

Australia

5

Sydney

Australia

6

Busan

South Korea

7

Auckland

New Zealand

8

Perth

Australia

9

Guangzhou

China

10

Chengdu

China

What do you think of this list? What do you think of the three China cities named? Why these three and not Dalian or Qingdao?

  • http://none Alex

    Hong Kong probably doenst count as “China” as far as measuring FDI does it… investment from HK to China is considered FDI, and HK is separate enough to consider it different from China

  • Rachel L.

    This list is nothing but amazing…
    “Top Ten Asian Cities For FDI in 2012″.
    I haven’t really given any thought to this, but before seeing the list I would be sure China tops the list.
    Singapore is number 1. and than you have Australia and new zealand. Absolutely amazing. Australia has 4 places. Not China, Australia. Now, of course much of Australia’s current growth is China, and who knows what will happen when China’s “pop” deepens. Still…wow.
    So, now we look at China. Hong Kong might be officially part of a China, but it is anything but China and the fact that it is on the list proves it in a way. It is like being in China without having to deal with China sort of thing. Different financial and judicial system, so, can’t really be included under the same category, pardon.
    Than there’s Gunagzhou. Another surprise with all the noise about rising costs and massive closure of factories there. I wonder if it’s due to the closeness to Hong kong and having Hong Kong money channeled there. Whenever there’s the magical word FDI, better check where the money comes from originally and what incentives where made to attract the money and how fast would it fly out…
    Last but not least, Chengdu. That’s a real one for sure. Everyone and their auntie are moving in that direction to meet in a happy party in two or three years to find our all the drinks got much more expensive due to all of the demand..
    Happy 2012 and Merry Christmas!

  • http://wangbo.blogtown.co.nz Chris Waugh

    “What do you think of this list? ”
    I never could figure out why the rest of the world dumps the Pacific in with Asia. We have our own identity.
    Why Auckland? It is NZ’s largest city and economic centre. It also has woefully inadequate public transport and clogged roads. It is also sitting on a volcanic field. The isthmus is 1km wide at its narrowest point (Portage Road), with the CBD and port north of that chokepoint and most of NZ’s agriculture to the south. You won’t be shipping much milk powder to China if you ship via Auckland and something happens to block that chokepoint. Tauranga has a difficult harbour entrance but is much less prone to being cut off from the rest of the country. Wellington and Dunedin have IT and TV/film industries to rival Auckland and good, sheltered ports. Christchurch’s faultlines will shake themselves out and then Christchurch will be in reconstruction mode and if I were a gambler I’d put serious money on central and local government putting in place policies to encourage FDI to Christchurch. It is, after all, NZ’s second biggest city and the biggest in the South Island, and the South Island offers high quality wool and sheep meat, coal, gold, adventure tourism, export education (i.e. attracting international students) and potential oil and gas, among other things.
    The Australian cities listed happen to all be state capitals, the three biggest and Perth. I’m not sure how Perth compares to Adelaide, Hobart and Canberra in terms of population, but it’s certainly the biggest city in Western Australia. NZ is consistently ranked the world’s third freeest economies after Hong Kong and Singapore, so why are three Australian cities ranked higher than Auckland? I have read recently that Australia’s mining boom has trashed the rest of the economy, and the term “Dutch disease” has been thrown around. Australia seems to have plenty of every resource, but it is desperately lacking in fresh water, with the agricultural heartland in the Murray-Darling basin especially prone to drought.
    Considering Hong Kong and Singapore are consistently ranked the world’s two freeest economies and have always depended on their ports and international trade, they’re too easy to pick. And considering Hong Kong has its own legal and economic systems separate from the Mainland, it should perhaps be listed separately. So without wishing to engage in any kind of political splittism, I count two Chinese cities in the list. Can’t tell you why those two were chosen, though.
    No, I’m certainly not an expert, but I can find plenty of reasons to quibble with the Australasian cities chosen, and that has me wondering why the other cities (other than Hong Kong and Singapore) were chosen. But [subscription required] warnings cause me to ignore links and I have more important things to do.

  • Sky

    We, an American company who has set up about 10 entities in China, also established a plant in Chengdu. More and more foreign investors have chosen Chengdu as their new growth point in China in recent years due to relatively low employment cost and government preferences under national development strategy in western China. But I am kinder surprised that only two cities in mainland China are listed in this ranking although I understand that the appeal of investment in China has decreased. In this case, nobody can deny that China is losing the massive advantage of human resource, and China has to upgrade its industries and impose same attention on stimulating its domestic demand market as that on absorbing foreign investment.

  • Paul Gillis

    China is now the #2 source of outbound FDI. I expect most of the investment going into Australia is Chinese money buying up all the minerals.
    Most of the investment in Hong Kong is probably rich Chinese buying $50 million homes on the Peak to get permanent residency.

  • http://www.joyceyland.com Joyce Lau

    Usually, when FDI to China is calculated, money flowing in from Hong Kong is counted as “foreign.”
    So, to be consistent, HK shouldn’t be considered a Chinese city on this list. It’d probably be more accurate to say that Hong Kong, plus two Mainland Chinese cities, make the top 10.
    If HK investment were considered domestic (which it’s not), I can bet you that Guangzhou wouldn’t be here.

  • Sol

    Unfair to put Australia and NZ in the same league with Asian countries. We are not a part of Asia, we are a part of Oceania. Australia and NZ are Western countries, not Asian countries.