Geographical Diversity

Assuming that China is one homogeneous market would be disastrous. It is not. Most of the foreign investments have been going into the southern provinces, specifically Guangdong and Fujian; those regions received more than 20 times the investments seen in the interior parts of China. The greatest industrial output is coming from the central coastal regions, Jiangsu and Zhejiang along with Shanghai, as much as 5 times greater than some of the underachieving regions. Consequently, purchasing power, cost of labor, availability of skilled labor, cost and availability of land, energy and raw materials among other things can vary by huge increments across the vast country.

Unlike a developed country such as the United States, the infrastructure in China is still in the frantically building and modernization stage. A modern infrastructure smoothes out the bumps and any uneven distribution of resources. A backward infrastructure is a major cause for regional disparities.