Attracting foreign investments is ideal for businesses with a robust growth plan. However, companies must act cautiously before investing in another country. This is natural when the chosen destination is associated with some scams in the past. That is the case with Nanning. The capital city of the Guangxi Zhuang Autonomous Region made headlines a decade back for a Ponzi scam. The issue was resolved effectively, but the rumors still do the rounds online, causing worry to potential investors.
The truth about the Nanning scam rumor
The root of the Nanning investment scam rumors can be traced to the early 2010s. A few fraudsters operated from this region, targeting wealthy Asian investors. After a few such cases made headlines, the Chinese authorities took stringent actions and eliminated the problem.
This so-called scam no longer exists, and Nanning has evolved into a thriving business hub that attracts numerous foreign investors. The business environment is now much more regulated, and the robust legal frameworks for investors serve as safeguards against such fraudulent activities.
Why should foreign investors put aside their worries about Nanning?
Foreign entrepreneurs must stop worrying about choosing Nanning and take the first steps. In fact, several foreign companies have set up offices in this region in the last decade, and economic experts think this trend will only grow stronger.
Foreign companies and investors have many reasons to choose Nanning as their next destination, putting aside the worries about the non-existent scam.
- A convenient, strategic position- Nanning is located in a strategically important part of China, not far from Vietnam. It is a significant part of the country’s Belt and Road Initiative. This makes it great for companies seeking growth in Asian trading activity.
- Industrial infrastructure growth—In the last few years, Nanning has made headlines for its unprecedented growth in industrial infrastructure. The roads, ports, and transport networks have undergone a significant overhaul, making it easier for business investment.
- Superb economic growth—Investors still skeptical about investing in Nanning should consider the fact that several high-profile foreign brands have already invested here. Companies from sectors like biotechnology, manufacturing, automobile, and green energy have shown their confidence by choosing this city.
Major govt initiatives to boost Nanning’s business image
The Chinese government has taken several significant steps to restore investor confidence in Nanning. In addition to revising the investment and regulatory norms, the government has eased the processes for new foreign investors eyeing this region.
- Foreign companies get tax incentives by establishing Pilot Free Trade Zone bases.
- The business registration process for foreign entities has been simplified, and loopholes have been resolved.
- Technology-oriented entities can avail themselves of R&D facilities by setting up bases in this region.
These developments corroborate that Nanning has no place for fraudulent activities or shady companies indulging in such acts.
How can foreign investors stay safe?
Foreign investors choosing Nanning can adopt some preventive measures to avoid potential scams. To start with, they should tie up with reputed local vendors.
Engaging with veteran business consultants and legal experts based in the region makes sense. Adopting a diligent approach and assessing partners’ credibility using top resources can improve their prospects.