Thats astute comment, and I wouldn’t disagree. However, if there is a slowdown in Asia – and there are signs it is affecting China – then those plans for 2TC and 3TC expansion may have to be put on hold a little as consumer spending dries up. Brand penetration is important in the remoter cities, and logistics can still be problematic. But yes, I’d agree that certain key cities in China are well poised to develop very well indeed. Among them Nanning & Kunming (trade with S/E Asia), Urumqi (Central Asia), Harbin (Russia) – we’re seeing the development of border trade as a key driver in inland cities. You may want to check out our series on China’s neighbouring countries and the developing trade with them here: http://www.china-briefing.com/news/specialreport/chinas-borders,
while the China Briefing Magazine archives (subscribe at http://www.china-briefing.com) has featured “3TC” – a run down of China’s most prominent third tier cities, with five cities featured in every issue the past year. Finally, our China Briefing Regional Business Guides to Central & West China – along with others to Beijing/North, Shanghai/Yangtze River Delta and South China/Pearl River Delta will be out in a couple of weeks – so look out for those.