Singaporean firms exploring Nanning to enter China’s market face a deliberate, slow process of building relationships and testing distributors, even as recent pyramid scheme arrests involving citizens put the Guangxi capital in the spotlight, channelnewsasia.com reported. Businesses told channelnewsasia.com they remain undeterred by the arrests as they seek growth outside Singapore’s domestic economy.
Singaporean Businesses Target Nanning as a Blue Ocean Market
Tracy Low, a 46-year-old sales director for Singapore-style coffee brand Kim’s Duet, visited Nanning earlier this year to find a Chinese distribution partner. During the 23rd China-ASEAN EXPO (CAEXPO) held from Sep 17 to 21, 2026, Low met several potential distributors. She stated that filtering these contacts before engagement could take three to six months.
More than 50 Singapore exhibitors participated in the five-day event, marking the highest turnout since 2023. Some firms tested the market initially, while others spent years establishing contacts. Tan Teck Yong, chairman and CEO of education company KinderWorld International Group, described first-tier Chinese cities like Beijing, Shanghai, Guangzhou, and Shenzhen as a crowded “red ocean.” In contrast, he called Guangxi a “blue ocean” offering less saturation and greater room for growth.
KinderWorld entered China in 2000 before expanding into Vietnam. Tan attended CAEXPO three times following the COVID-19 pandemic to build connections and meet officials. His discussions took a year and a half before KinderWorld signed agreements with local education institutions in Guangxi.
Building Contacts and Exploring Unfamiliar Terrain in Guangxi
Wayne Eo, director of building materials firm Sixth Harmony Global, attended his first CAEXPO in 2024 knowing little about Nanning. He was surprised by the city’s modern high-rises and shopping malls, though he noted that local food required adjustment. Through the expo, Sixth Harmony expanded its contacts beyond Nanning to supply customers elsewhere in Guangxi and Guangdong.
China’s market structure differs significantly from Singapore’s direct consumer reach. Eo explained that different provinces require distinct distributors, contacts, and operational methods. His company evaluates potential partners by starting with small transactions to monitor payment reliability and working relationships over more than half a year.
Official backing supports these internationalization efforts. Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong noted in March 2026 that growth opportunities lie beyond domestic shores, backed by government support for overseas ventures. Senior Minister Lee Hsien Loong also visited Guangxi in May 2026, with the Ministry of Foreign Affairs describing the region as a key gateway linking China with Southeast Asia.
Pyramid Scheme Arrests Leave Firms Unfazed
The market expansion efforts coincide with scrutiny following the arrest of 52 Singaporeans over suspected involvement in pyramid scheme activities in Guangxi. Investment pitches in the area have long promised unusually high returns by framing Nanning as a strategic link destined to become “the next Shanghai.”
Zhang Fan, a 40-year-old Singaporean cybersecurity worker, was approached in December 2025 by a university friend with an investment proposal. The pitch involved investing S$40,000 to S$50,000 with the prospect of receiving more than S$1 million over two years. Zhang declined the offer, stating it sounded too good to be true.
Despite the subsequent arrests, the Singapore Business Federation (SBF) reported no concerns raised by companies entering Nanning. Soo Wei-Chieh, SBF executive director for international business, told channelnewsasia.com that businesses continue to ask standard questions regarding market access and opportunities. KinderWorld’s Tan stated the news had no impact on his operations, emphasizing that the firm focuses on exporting education programs rather than seeking speculative financial returns.
Expert Advice and Risk Mitigation for Overseas Expansion
Legal and research experts urge careful scrutiny of overseas proposals. Liang Weitan, a partner in the China Practice at WongPartnership, advised investors to verify proper registrations, contracts, funding structures, and actual business operations. He recommended checking business licences, visiting premises, and establishing how projects generate revenue before transferring funds.
Samuel Chng, a research assistant professor at the Lee Kuan Yew Centre for Innovative Cities at the Singapore University of Technology and Design, noted that promising markets can still contain unsound ventures. He advised pausing to check evidence independently of those promoting a business proposition.
Tan recommended that smaller firms utilize trade missions organized by groups like SBF to meet verified contacts. However, Soo cautioned that an introduction from a business federation does not constitute an endorsement.
Frequently Asked Questions About Doing Business in Nanning
What event do Singaporean companies use to enter the Nanning market?
Singaporean firms utilize the China-ASEAN EXPO (CAEXPO) in Nanning, where over 50 exhibitors from Singapore participated during the September 2026 event.
How long does it take to establish business operations in Guangxi?
Companies reported spending between three to six months filtering distributors, while KinderWorld International Group spent a year and a half in discussions before signing agreements with local education institutions.
What precautions do lawyers recommend before investing in China?
WongPartnership partner Liang Weitan advises investors to verify business licences and registrations, examine physical premises, review contracts, and confirm how a project generates revenue before transferring funds.
How did the recent pyramid scheme incidents affect legitimate Singaporean businesses?
The Singapore Business Federation stated it was not aware of companies raising concerns, and business executives reported no negative impact on their export and operational plans in the region.
Did you know?
The recently opened Pinglu Canal provides Nanning and inland southwestern China with a direct water route to the sea, enhancing the region’s connectivity as a trade gateway to Southeast Asia.
“We build some form of relationship, and have an understanding of each other. Then we trial a little bit of business here and there,” Eo said.
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