In February this year, 20 cities including Beijing, Tianjin, Shanghai, Chongqing, Dalian, Shenzhen, Guangzhou, Wuhan, Harbin, Chengdu, Nanjing, Xi’an, Jinan, Hangzhou, Hefei, Nanchang, Changsha, Daqing, Suzhou and Wuxi were approved by the State Council as China’s outsourcing model cities. In order to promote the development of China’s outsourcing industry in both size and strength, various ministries and commissions under the State Council have all put forward a series of supportive policies. From then on, China’s outsourcing industry has been in vigorous development.

These 20 cities are just pilot cities, and in future the Chinese government will cut the number in light of cities‘ factual performances and basic data. Every two years there will be one city removed from the list and the plan is to cut 5 cities in 10 years without appointing new ones.

Whether forced by the pressure of the possibility to be removed from the list or out of the need of industrial upgrading, all model cities are striving to seize opportunities for development. However, the inter-city competition in policies and infrastructure has been proved to be hardly effective without being able to form industrial clustering rapidly. So how can a city stand out from the fierce competition as an outstanding outsourcing destination in China or even in the whole world? The answer for the outsourcing model cities to achieve sound and rapid development, to create brand effect quickly and to build together a sound industrial ecology nationwide is perhaps to develop their own strategies for characteristic development, to rely on their own advantages and to have differentiated positioning.

In this issue, we integrate analysis and suggestions of analysts from famous consulting institutions, practical cases of the characteristic development of some model cities and profound insights of industry experts and corporate executives to explore how China’s outsourcing model cities can achieve characteristic development.

(Reproduced from "ChinaSourcing" magazine)