New Global Hot Spots

 

China

Chengdu

Population: 4.1 million

Hot industries: Manufacturing, telecommunications

What's new: Chengdu is a fierce competitor to Chongqing, a much-hyped megalopolis nestled on the Yangtze River. Much has been made of the Three Gorges Dam, which opened Chongqing to larger ships. But Chengdu has a better quality of life, stellar universities, and well-regarded industrial parks--not to mention a huge international airport. "Which city in central China is more likely to create a Silicon Valley-type environment? My bet would be on Chengdu," says Alexander Pan, an international tax partner for PricewaterhouseCoopers. Nevertheless, both cities benefit from China's "Go West" program, a multibillion-dollar effort to drive growth into the country's interior. Note, too, that the considerable tax breaks China has afforded foreign companies will be revoked in 2008--everywhere but the western and central regions, including Chengdu and Chongqing.

Who's doing business here: Manufacturers, particularly those making telecom components.Intel (NASDAQ:INTC) has operations in Chengdu.

Suzhou

Population: 1.6 million

Hot industries: Biotech, manufacturing

What's new: China's recent upgrades to its rail system, which has bullet trains that travel at 155 miles per hour, cut the transit time between Suzhou and Shanghai in half, to 45 minutes. Solid infrastructure is another draw; in a recent report, the World Bank praised the city's first-class power grid, identifying Suzhou as one of six Chinese "golden cities" because of its strong property protection, educated work force, and swift clearance for imports and exports.

Who's doing business here: Companies requiring a highly skilled work force. ChonTech PharmaChem Technology, a biotech firm founded in Waterford, Connecticut, moved its headquarters here--and even added "Suzhou" to the beginning of its name.

Brazil

Belo Horizonte

Population: 5.3 million

Hot industries: Mining, agribusiness, technology

What's new: Unlike bursting-at-the-seams São Paulo, Belo has room to grow, not to mention a popular pro-business governor. The state government has spent billions recently to upgrade highways, rails, and the electric grid, which has attracted manufacturers and suppliers to the local mining industry. Belo's top universities have drawn companies like Google (NASDAQ:GOOG), which has an R&D lab here.

Who's doing business here: Manufacturers that need a skilled work force. Gibbs Die Casting, a Henderson, Kentucky-based manufacturer, has a plant in Belo, supplying to South American manufacturers.

United Arab Emirates

Ras Al Khaimah

Population: 200,000

Hot industries: Tourism, back office services

What's new: A port city 45 minutes from Dubai, Ras Al Khaimah is attracting 200 businesses a month to its free trade zone, perhaps because companies in the zone pay zero corporate taxes. It's easy to get started here; foreign companies can get a license, an office, an Internet connection, and a phone line within 24 hours. The customs process has also been streamlined. Says Oussama El Omari, CEO of the zone: "We can get your container cleared before it even backs into the port."

Who's doing business here: Companies use it as an alternative to traffic-clogged Dubai for their Middle East logistics hub or back office center. B2 Technology & Consulting Services, a technology consultancy based in Falls Church, Virginia, has an office in the RAK free trade zone.

Mexico

Aguascalientes

Population: 859,000

Hot industries: Automotive, manufacturing, consulting

What's new: American companies often look to Mexico's northern border, but this year the World Bank ranked Aguascalientes No. 1 in the country for its ease of doing business. Since 2005, real estate taxes have been cut by 70 percent, and the time it takes to open a company has been cut from 45 days to 12 days. Construction licenses can be procured in less than a day, compared with five months in some places in Mexico.

Who's doing business here: Pounce Consulting, a software consultancy in Corona del Mar, California, has an office here. Cleveland-based E.C. Kitzel & Sons supplies to the city's auto manufacturers.

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    • Nitasha Tiku

    Reporter Nitasha Tiku covers technology, finance, green business, and social entrepreneurship for Inc. magazine and contributes to the staff’s daily links blog. Her work has appeared in New York magazine, The Villager, Chelsea Now, and on nymag.com. She lives in Brooklyn, New York.


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