- Check planning, land use and admission rules
- Verify title, lease terms and utility quotas
- Put amenities and exit terms in writing
1. Why diligence matters before move-in
China's Private Economy Promotion Law took effect on May 20, 2025, setting clearer rules on equal market access, fair competition and protection of private businesses' rights. That gives companies a stronger legal baseline when negotiating for park space, plants and land. But the law sets a floor; it does not do the due diligence for you. Claims about "policy support," "full amenities" and "fast approvals" often look different once they meet contracts and certificates. Once a company signs, renovates and moves in equipment, sunk costs are locked in. If it then discovers that the land-use designation does not fit, that energy quotas are insufficient, or that promised facilities never arrive, its bargaining position shrinks sharply.
More practically, a park address affects tax registration, social insurance, qualification applications and subsidy filings. A change of address can force many existing arrangements to be redone. Front-loading verification is therefore a way to replace remediation with screening.
2. Five items to clarify
First, planning and land-use status. Confirm the approved use of the site, whether it sits within a legally approved development or industrial zone, and whether your industry fits the park's admission criteria. Manufacturers should also ask whether the relevant processes are permitted and whether environmental impact assessment and discharge permits can be obtained there. Do not rely on showroom models; ask for approval documents.
Second, title and lease stability. Check whether the landlord has the right to lease, whether the property has lawful title documents, and whether it is mortgaged or sealed. Lease term, rent adjustment, deposit refund, and early-termination liability should all be in the contract. Be wary of "move in first, paperwork later" promises, because incomplete certificates can block address registration and qualification applications.
Third, energy and environmental quotas. Manufacturers should ask whether electricity, water and gas quotas are secured, whether capacity remains, and who pays for upgrades. Companies with emissions should verify that the park has the necessary environmental infrastructure and quota space. Without quotas, production lines cannot run while rent keeps accruing.
Fourth, how amenities will be delivered. Transport, canteens, dormitories, logistics, connectivity and property management response all affect retention and daily efficiency. Rather than listening to pitches, talk to existing tenants and put delivery dates and liability for key amenities into the contract or a supplementary agreement.
Fifth, exit and renewal terms. Businesses have cycles, so leave a way out. Clarify how early-termination penalties are calculated, whether fit-out investment can be compensated, whether renewal rent increases are capped, and whether subletting is allowed. These clauses are often conceded at signing but hurt most at exit.
3. Turn verification into a process
Companies should turn these five items into a checklist owned separately by legal, finance, and operations or administration, with written materials requested and retained for each. Any verbal promise from the park should be written into a contract annex; anything that cannot be documented should be treated as unconfirmed. Industrial parks are not to be avoided, but they must be chosen with clear eyes. Doing the homework before signing lets the company focus on running the business.
Site selection is a long-term decision. Caution is not conservatism; it is being responsible for cash flow and your team.