China's North-South economic divide is growing, away from the glare of the US trade war
- China’s economic centre of gravity is shifting to the southern part of the country, home to hi-tech industries and coastal ports
- Growing divide adds to economic pressure of trade war with the US and general slowdown in China
Wang Le, a Beijing native, moved to Shanghai in 2016 to open a Thai boxing club. As an entrepreneur, Wang said Shanghai in China’s South is more open to new things than Beijing, in the “conservative” North.
“You do not need to worry about being niche here, no matter what types of goods, consumers can find what they need, and these types of businesses can survive,” he said.
What struck Wang as the biggest difference is the culture of doing business. In the South, he said, abiding by rules is more rooted in people's minds than in the North, where businessmen tend to give empty promises and spend their time building close relationships with those in power to facilitate business deals.
“In general, the south has a stronger sense of service than the North, no matter if they are a vegetable salesman or a government official. In such an environment, customers [in the South] have higher demands, or are more critical [of products or services they purchase],” said Wang, who added that this can be challenging for northern entrepreneurs to get used to, but that the rewards are worth it.
“As long as you do it well, they will be willing to spend money in your place,” Wang said. "'Willingness to consume' is also a feature of Shanghai, they are willing to spend on quality goods.”