Earlier this year, South Korean tech giant Samsung was granted approval from the Chinese government to make a large scale investment into the country.
Samsung revealed in a recent statement that it plans to build a $7 billion (£4.4bn) plant to produce memory chips for smartphones, tablets and other electronic devices. Samsung will build its new plant gradually, with an initial investment of $2.3 billion.
According to its press releases, Samsung Electronics decided to bring additional manufacturing facilities to China in order to be closer to its clients.
As China is perceived as an underserved market with a huge potential for the electronics industry, Samsung's official statement points out that moving here will help the company to "rapidly respond to meet the fast-growing demand from customers and further strengthen competitiveness in the memory industry".
The move will help the company reduce transport and storage costs as well as be more adaptable to the incredible short inventory cycles for electronics manufacturers.
The largest market in the world is also a favoured place for electronics manufacturers looking to invest in cost-effective labour.
Source: BBC UK