Beijing is home to many companies in the fields of AI, big data, edtech, and fintech. The dense university landscape produces around 200,000 graduates annually, many of whom start their careers in the startup scene. However, as the political center of China, Beijing is also characterized by heavy regulation and therefore does not make sense for every company.

Shanghai (and other cities in the Yangtze River Delta) is home to many Chinese and international corporations in the manufacturing, service, and banking sectors. Foreign B2B startups can expect good customer proximity, but Shanghai has also become very expensive and no longer affordable for many employees in the startup scene.

Shenzhen (and the Pearl River Delta) has become a center for hardware design and production. Shenzhen’s highly integrated supply chains are particularly attractive for start-ups looking for production outsourcing. But working with Chinese actors within the Shenzhen ecosystem is also challenging and requires a clear risk- and cost-benefit assessment.