What Is a China City Location Scorecard?
A China city location scorecard is a systematic evaluation framework foreign companies use to compare and rank Chinese cities for business operations. The scorecard aggregates 6 weighted evaluation dimensions with 18 sub-criteria, producing a composite score between 0 and 100 that translates qualitative site assessments into comparable numerical data. In 2026, foreign companies using structured scorecards report 42% faster city selection decisions and 28% lower post-entry relocation rates compared to companies relying on unstructured comparisons.
How the Scorecard Works
The China City Location Scorecard evaluates cities across 6 primary dimensions, each with a defined weight reflecting its importance to foreign business operations. Market Access (25%) tracks proximity to target customers, industry cluster density, and regional GDP growth rates. Talent Availability (20%) measures skilled labor pool size, university graduate output, and bilingual professional availability. Logistics Infrastructure (15%) evaluates port and airport connectivity, highway density, and warehouse availability with cold chain capability.
Regulatory Environment (15%) scores business license processing times, industry-specific restriction levels under the negative list (负面清单, fùmiàn qīngdān), and local government responsiveness to foreign investment inquiries. Cost Competitiveness (15%) compares industrial land prices, Grade A office rents, average manufacturing wages, and corporate income tax after local incentives. Quality of Life (10%) rates international school availability, healthcare quality with English-speaking staff, air quality index averages, and expatriate housing options.
Step-by-Step Evaluation Process
Step 1: Identify your priority tier. If your company is in manufacturing, assign an additional 5% weight to Logistics Infrastructure and 5% less to Quality of Life. If you are in professional services, assign 5% more to Talent Availability and Regulatory Environment. The base weights above are for general trading companies as the default profile.
Step 2: Score each city from 1-10 on every sub-criterion. Use objective data from government databases rather than subjective impressions. For objective data, source industrial land prices from the China Land Price Information System, labor costs from the China Labor Cost Index, and registration timelines from the World Bank China Business Environment Report. Subtract 1 point if the city requires additional permits for your specific industry sector.
Step 3: Calculate weighted scores by multiplying each sub-criterion score by its dimension weight and summing to the composite 0-100 score. For example, if Shanghai scores 9 on Market Access, with a 25% weight, that is 9 × 0.25 = 2.25 points out of 25 possible. A city scoring 78+ is a strong candidate, 60-77 warrants further due diligence with a site visit, and below 60 generally indicates the city is unsuitable for primary operations unless offset by unique industry incentives.
Sample Evaluation Table
| Dimension | Weight | Shanghai | Shenzhen | Chengdu | Suzhou |
|---|---|---|---|---|---|
| Market Access | 25% | 9.2 | 8.5 | 6.8 | 7.5 |
| Talent Availability | 20% | 8.8 | 8.0 | 7.2 | 7.0 |
| Logistics Infrastructure | 15% | 9.5 | 9.0 | 6.5 | 8.0 |
| Regulatory Environment | 15% | 7.5 | 8.0 | 7.0 | 8.5 |
| Cost Competitiveness | 15% | 4.5 | 5.0 | 8.0 | 7.5 |
| Quality of Life | 10% | 8.0 | 7.5 | 6.0 | 6.5 |
| Composite Score | 100% | 79.8 | 77.3 | 68.5 | 75.3 |
Common Mistakes in City Scoring
Outsourcing the evaluation to regional attraction materials rather than primary data is the most frequent error. Local government investment promotion materials quote maximum incentives and ideal timelines, not real-world averages. Companies relying on promoted data over primary sources report site performance gaps of 15-25% against projections within the first 2 years. Verify every data point against the original government database before including it in the scorecard.
Ignoring the industry-specific weight adjustment is the second most common pitfall. A biotechnology company using general manufacturing weights would underweight talent availability by 10% and over-weight logistics infrastructure by 5%, shifting the optimal city choice by an average of 2 positions in the final ranking. Use the industry profile adjustment table in the scorecard documentation to calibrate weights before starting the evaluation process.
Where to Go From Here
— China Gateway 360 —
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