The Yangtze River Delta remains one of China’s most important regions for foreign investment.
For multinationals, the question is not whether the region matters. It is where to locate within it.
That decision is becoming more selective. Companies are looking beyond access to Shanghai or Hangzhou alone. They are weighing cost, logistics, sector depth, delivery timelines, talent and the track record of other foreign investors.
Jiaxing Economic and Technological Development Zone offers a useful example of how this decision is changing.
Based on the 2026 Investment Environment White Paper compiled by Deloitte, the zone presents a location case built around three areas: access to the Yangtze River Delta, an established foreign investment base, and practical improvements in the way projects are approved and delivered.
A location between major city economies
Jiaxing sits between Shanghai, Hangzhou, Suzhou and Ningbo.
That position gives companies access to several major markets, supply chains and transport routes from one location. Shanghai Hongqiao can be reached by high-speed rail in around 30 minutes, while the wider Yangtze River Delta can be reached within one hour.
The logistics case is also broader than road and rail. Jiaxing has the highest expressway density in Zhejiang Province, while sea-river intermodal container throughput reached 1.37 million TEUs, up 20.5% year on year. According to the white paper, this model can reduce transport costs by around 50% compared with road transport.
Jiaxing Nanhu Airport has also expanded its role, with 17 domestic routes across 16 cities and 28 international cargo routes operated in partnership with YTO Group.
For companies assessing China locations, this matters because Jiaxing is not competing on proximity alone. Its case is based on the ability to connect production, suppliers, customers and freight routes across the region.
A foreign investment base with weight
Foreign investment is already a significant part of Jiaxing Economic and Technological Development Zone’s economy.
Between 2021 and 2025, GDP in the zone increased from RMB 42.592 billion to RMB 53.972 billion, a rise of 26.7%. In 2025, industrial output above designated size reached RMB 92.3 billion, while total imports and exports reached RMB 45.68 billion.
The zone also recorded actual utilised foreign investment of USD 260 million in 2025, up 29.6% year on year.
More than 800 foreign-invested enterprises are located in the zone. Together, they contribute 74.5% of industrial tax revenue. The zone has also attracted 248 investment projects from Fortune Global 500 companies.
This is an important point for investors.
Foreign companies are not a small part of the local industrial base. They are central to it. That gives the local government a clear incentive to maintain conditions that support international business.
The long-term presence of companies including ZF, Hella, Panasonic, Philips and LEGO adds further context. It shows that Jiaxing is not only attracting investment. It has also supported continued operations from major international companies.
Sector depth in practical industries
Jiaxing’s sector strengths are concentrated in areas where supply chains, production capability and operating costs matter.
In high-end equipment manufacturing, companies including ZF, KraussMaffei and Hella have established production bases in the zone. This has helped build an automotive components cluster. In 2025, the added value of the equipment manufacturing sector reached RMB 12.873 billion, up 6.2%.
In high-end health food, Majiabang Health Food Town has attracted international companies including Mars, Abbott and Hormel. In 2025, the town’s total output value reached RMB 8.995 billion. South Korea’s Samyang Foods has also selected Jiaxing for its first production base in China, with total investment of USD 150 million.
Future-facing sectors are also developing. The output value of the artificial intelligence sector reached RMB 7.783 billion in 2025, up 24%. In life sciences and healthcare, the Satellite Future R&D Centre plans to invest RMB 10 billion in R&D over the next five years. The zone is also home to 101 software companies, which generated revenue of RMB 11.693 billion in 2025.
For investors, the point is not simply that Jiaxing has multiple sectors. It is that its strengths are linked to real operating activity, existing investors and measurable output.
Cost and delivery still matter
Cost remains a key part of the location case.
According to Q4 2025 data, industrial land in Jiaxing was priced at RMB 634 per square metre, compared with RMB 895 in Hangzhou. The monthly minimum wage was RMB 2,490, compared with RMB 2,740 in Shanghai.
Strategic emerging industry projects may also be eligible to acquire industrial land at 70% of the assessed price. Industrial electricity is listed at RMB 0.57 per kWh, while industrial gas is listed at RMB 3.72 per cubic metre.
These figures will need to be assessed against each company’s own requirements, but they give investors a useful basis for comparison.
The administrative data is also relevant. The construction permit approval period has been reduced from 35 days to three days. A phased completion acceptance process has shortened the average time to production by around seven months.
In June 2025, Jiaxing Economic and Technological Development Zone issued the city’s first business licence for a foreign-invested enterprise completed fully online by a foreign individual.
For companies preparing internal location papers, these details are valuable because they move the conversation beyond general claims about business support. They provide specific points that can be tested during due diligence.
OCO Global’s view
Jiaxing Economic and Technological Development Zone presents a credible location case for companies assessing the Yangtze River Delta.
Its strength lies in the combination of access, cost, sector activity and existing foreign investment. The data also points to a local administration that understands the importance of delivery timelines and practical support for investors.
For multinationals, Jiaxing may be most relevant where companies need a base connected to the region’s major city economies, but with a different cost and operating profile from larger neighbouring markets.
As with any location decision, the data should be tested against project-specific needs, including labour availability, supplier access, customer proximity, utilities, incentives and regulatory requirements.
But as a starting point for Yangtze River Delta location analysis, Jiaxing offers a clear and evidence-based case.
To learn more about investment opportunities in Jiaxing Economic and Technological Development Zone, or to discuss how OCO Global can support China location assessment and engagement with local investment teams, please contact us.
Data source: 2026 Investment Environment White Paper for Jiaxing Economic and Technological Development Zone, compiled by Deloitte. Information correct as of 2025.
