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Hi Sean:

Go West of HK? Kunming? I must admit that when I think of the Go West Strategy, I think it generally refers to West of Shanghai, up the river. Changsha, Wuhan, Chongqiing, Chengdu (most of Hubei and Sichuan in fact)...These manufacturing powerhouses seem to be the real focus of the campaign. Thus, given the road infrastructure development west from Shanghai, I suspect that these cities and a good deal of the Go West improvements will not generally end up being serviced by the ports of HK, Yantian, Shikou etc. Perhaps when you take your trip to the PRD, you might focus more on the potential for continued regional development around Guangdong province. Is there still steam left in the S. China engine? What is the future of the region? That is something I would love to better understand. Understanding the potential for logistics growth in combination with the Go West campaign, however, might be better understood as an effort to connect the cheap manufacturing labor in Central China to Shanghai. These are just my thoughts. I would love to hear from others if I am mistaken.

Hi Chris,

Thanks for all the comments and perspective. I agree that the the biggest "Go West" drive seems to be along the YRD, at least from my experience visiting Shanghai, Jiangyin and Nanjing; as well as from my personal research. And like you pointed out, much of any logistics infrastructure and business development seems to be in a "follow the manufacturer" approach. Though, perhaps others can confirm such a general trend.

Using the metaphor I have used in the past, build an "island of connectivity" (manufacturing base) in a remote area and then build up high-performance supply chains linked to the Coast based on existing yet underdeveloped links already in place.

Hi Shawn/ Chris,

the cities of Zhuhai, Dongguan, and Shantou all rank about the same for me. We have operations in 2 of the three and they are all essentially low end factory complexes with a lot of unskilled (read cheap) labor who work on component/ basic assembly items.

Chris - to your point of how the South can leverage the west, I am of two minds: (1) the west will leverage low cost bases to produce components that will then be assembles near sea ports for export. as skilled labor comes up in areas like DG, Zhuhai, and Shantou, there is an opportunity to grab some of that subassembly/ final assembly work.

My other mind says that they cannot. that the "go West" strategy will create two models for success: (1) International firms will focus on high tech intangibles (R&D, Software, etc) and back office outsourcing and (2) International/ domestic manufacturers will leverage low manufacturing costs to produce domestically consumed items.

Hope all is well guys. Attending first Friday tonight!

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