MNCs target 2nd tier cities: survey

Multinationals are eyeing China’s second-tier cities as expansion destinations for the next two years, according to a Jones Lang LaSalle survey released Thursday. The survey showed companies that set up off-shore manufacturing and other outsourcing services in China’s big three cities – Beijing, Shanghai and Guangzhou – have expanded their operations in secondary and tertiary locations, lured by competitive costs and business opportunities. Chengdu, capital of southwest China’s Sichuan province, northeast China’s Dalian and east China’s Hangzhou ranked as the top second-tier destinations. "We expect first mover companies, such as those in IT or telecommunications, manufacturing, as well as transport and logistics sectors, to strengthen their investments in the second-tier locations and begin eying expansions to potential tertiary tier cities," said Anna Kalifa, head of research at Jones Lang LaSalle’s Beijing Branch.