Companies are leaving the Pearl River Delta

The Pearl River Delta region has been a major manufacturing base for years. However, as the government is placing more regulations, companies are seeking to relocate - inland provinces have became new favorites for its lower land and labor costs. 

Antony Chuan, a Taiwanese investor, had shifted its focus from his factory in Shenzhen to organizing trips with other Taiwanese investors to visit inland provinces. He said that “Going back two decades, when Taiwan-invested business first appeared in the Pearl River Delta, the pattern of management was sloppy. Plenty of investors, with compasses in hand, decided on factory locations according to wherever they had their hearts set on.” Today, many factories do not meet the present requirements for fire safety and environmental protect. “For them, the suggestion is either to upgrade or leave.”