Domestic Westward Expansion in Mainland China Causes, Effects, Foreign Investment, and Local Regulations

Abstract

Kunming City, the capital of Yunnan Province, is known through the People’s Republic of China (hereinafter “PRC”) for its beautiful gardens and scenery. Recently, tourists are not the only people visiting this Southwestern city. Kunming is undergoing rapid expansion as companies from throughout the PRC and abroad enter the local economy. This relatively small capital now has Apple Stores, Louis Vuitton, and Starbucks. Surprisingly, most of the foreign luxury car companies have also entered Kunming. Ferraris, Lamborghinis, and Mercedes are now a common sight in the PRC’s “Spring City.” This article discusses domestic westward economic expansion in the PRC. In the context of the PRC’s progress towards a developed and globalized society, this article focuses on foreign participation and examines the effects of expansion on developing areas in Western China and more developed areas in Eastern China. This article also explores local regulations that affect foreign investment and local expansion. This article begins by examining the current extent of foreign manufacturing and sales in the PRC, the causes and effects of domestic westward expansion, and the local regulations that either promote foreign investment or protect society and the environment from the adverse effects of rapid development. This article then analyzes local regulations, the current economic situation in Eastern China, and the future of Western China. This article concludes by providing insight on the effectiveness of local regulations and the relationship between foreign companies and Western China.