The most efficient way to move small amounts goods within China is to: find a “migrant truck” service – a semi-legal establishment that will transport boxes / furniture piled onto the back of a rusty old truck. You do of course want to insist on some amount of insurance, and references, since these are usually run by extended families of migrants. These services are much faster (and generally cheaper) than China Post or other official channels. 

Wuhan is set to benefit from the CCP’s plans to ’stimulate domestic demand’ by improving basic infrastructure in areas outside the coast. Lack of basic transportation capacity (like, you know, paved roads) serves as a very significant intranational barrier to trade. Asia Logistics Wrap has a graph comparing transportation costs in China and the US - (via CLB). Whether China’s $600 billion “investment plan” will effectively address this persistent phenomena remains to be seen – but it’s at least a strong signal for future intentions. 

So why are some people optimistic about Wuhan? China Law Blog’s post is here – comparing Wuhan to downstate Illinois (really?) All Roads Lead to China explains why a Hubei “mega-cluster” is becoming more and more likely, given Wuhan’s natural intersection for rail, river, and air transportation (Wuhan was recently picked as China’s fourth major international airport hub). 

One item that hasn’t been mentioned by any of the commentary is that Wuhan has the third most universities of any city in China, especially striking given the city’s population disparities with Beijing / Shanghai. 

A lot of people have inquired why “in God’s name” would you choose to live in the sweaty oven that is Wuhan? Mostly had to do with the likelihood of getting the grant, as everyone gravitates towards Beijing-Shanghai – but it did win out over Chengdu / Chongqing. Here’s my original assessment.