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Grab morning latte from Starbucks, conduct satellite hook-up from boardroom of skyscraper office, pick up imported cheese and wine from convenience store on way home to loft apartment. It is a snapshot of executive life that could as easily be from New York or Shanghai.

This sense of familiarity has, since the onset of China's economic miracle, been a major factor in attracting international business to the big centers of Shanghai, Beijing and Guangzhou. Each city's economy took off at lightening pace, creating an enticing environment for thousands of foreign expats, with vibrant international communities and amenities on par with developed, Western societies.

But a shift is occurring, with foreign investors increasingly turning to China's comparatively untapped second-tier cities.

Chinese second-tier cities, such as Wuhan (top) in Hubei Province, now are home to thousands of expats: (above, from left) Amanda Marfise, Barb Sturges and Caio de Araujo. (file photos from China Daily)

As the primary markets continue to mature, and regulatory measures to cool the economy take effect, inland provinces eyeing east coast prosperity have raced to improve infrastructure, bringing a more favorable environment for international business and higher standards of living.

Consequently, a growing number of expats are shunning China's traditional hotspots for the provincial capitals and more remote areas.

Caio de Araujo, of Brazil, is an engineer with a firm from the United States, in Ningbo, East China's Zhejiang Province. The 45-year-old moved to the industrial city and foreign trade port with his wife and teenage daughter last year, and has since witnessed an increased international presence.

"Ningbo is growing a lot. There are huge business opportunities, and every day more foreigners are coming to town to develop new businesses or work for companies," de Araujo says.

"When I got there, the expat community was not that big. Nowadays, you see more foreigners popping up everywhere... there are six 5-star hotels under development at this moment."

Yet, despite the frantic pace of change, de Araujo says the city's expat scene is far removed from Shanghai or Beijing.

"Those big cities in China, as any other big city in the world, have a lot of influence from all over the world. They have a lot of places you can go and kind of feel at home. So it is easy for expats to still live their lifestyle, or at least close to it," he says.

When you live in small cities, the lifestyle is completely different, even simple tasks turn out to be difficult to adjust to. Chinese culture is more present. Chinese lifestyle is there and somehow you have to understand, respect and adjust to it, he adds.

"I think this is very good because it gives you a broader vision of the world. I guess you kind of understand you are not the only human race on earth," de Araujo says.

China business analyst Richard Brubaker predicts the number of foreigners working in major cities will drop off as infrastructure in fledgling markets becomes more sustainable.

"It will create opportunities for foreign companies to spread across China. Expats don't have to be in Shanghai, and they can be spread across other cities that are more strategic from a marketing perspective," says the managing director of international business consultancy, China Strategic Development Partners (www.chinasdp.com).

In a report aimed at foreign investors, Brubaker examined real estate investment in the three "showcase cities" of Shanghai, Beijing and Guangzhou, which fed an overheated property market with potential returns of more than 200 percent in just a few years.

"As the cities most accessible to foreign businessmen, they offered a degree of familiarity unique in China, and as such, distracted investors from looking to other markets as investment destinations. Unlike second tier provincial capitals, these cities were considered to be safe bets in a country littered with buyer beware stories," Brubaker says.

"Historically less developed than Shanghai, Beijing and Guangzhou, second-tier cities sought to catch up by rushing to build the infrastructure necessary to attract large sums of investment.

"So, while the primary markets commanded the attention of many foreign investors, new airports, central business district, arterial highways and universities were being planned and constructed in the provincial capitals. The result has been nothing less than the complete transformation of these cities (and) real estate investment has followed."

Chongqing resident Amanda Marfise is one of just a few thousand expats in a city of some 31 million people. The American schoolteacher says Chongqing Municipality is a large city undergoing rapid development, but is still without a strong foreign presence.

Since arriving in the manufacturing hub in Southwest China earlier this year, Marfise has been struck by the dichotomy of old and new China, characterizing Chongqing.

"Forks and knives are seldom found. English menus are a complete rarity, and imported liquor and food is only found in a couple of specific stores and restaurants," the 26-year-old says.

"After going to Shanghai for National Day holiday, I wrote to family and friends saying I felt as though I had returned to America for a few days. When I was in Shanghai, I could have easily pictured myself staying there. I made friends within five days of visiting.

"But, after returning to Chongqing, I realized, for right now, experiencing this - this is China. While there have been many difficult days, the people are as hardworking as anyone I have ever seen. They are, for the most part, friendly and warm-hearted," Marfise says.

Among China's provincial capitals, Chengdu of Sichuan Province and Chongqing have emerged as frontrunners in attracting foreign manufacturers, that benefit from lower labor and rental costs, as well as proximity to raw materials. In the north, Dalian, home to one of Asia's best ports, is an up-and-coming center for trade and tourism, and had already drawn more than 10,000 foreign ventures.

Brubaker says Xi'an, in Northwest China's Shaanxi Province, and Chengdu have established themselves as centers for hi-tech investment, while Chongqing and Wuhan have capitalized on their history as heavy industry bases to attract investment in auto and steel.

While opportunities in these larger provincial centers are drawing foreign attention, other expats are attracted by the lifestyle offered in rural parts of China. Though now based in Beijing, long-term China resident Barb Sturges found unexpected joy living in isolated areas, including Qufu, East China's Shandong Province, and Lhasa, in Southwest China's Tibet Autonomous Region.

"Although I was raised as a city girl in the US, I have found that I actually like living in rural areas and being surrounded by farmlands. In Qufu, I remember the corn being scattered everywhere to dry, and I thought this was so fascinating," the 58-year-old teacher says.

"Life was simpler there, and I remember being very happy. It was also easy to connect with my students because they lived so close. An additional reason I liked living in the countryside was because I had more time to prepare for teaching - no time spent with shopping or traffic!"

Following her first post at Qufu Normal University, Sturges taught at the Holiday Inn in Lhasa, and later at the police university located in an isolated part of Daxing County, outside Beijing. In these rural settings, she felt "a sense of genuine immersion in the culture" and forged strong personal connections.

"I believe it may be easier to get to know people in smaller towns, primarily because people are living closer and therefore it is easier to connect. However, whether you are living in a large or small place, I have found it is important to be the one to take the initiative and reach out," Sturges says.

(China Daily November 16, 2007)

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