The central China adjacent to the coastal region of China present significant differences with the coastal region in various manufacturing environments, such as wage level, stable labor supply, and land price. When the coastal region was suffering from the global financial crisis, the rapid development of the inland region helped the Chinese economy to display its undiminished strength. In particular, as an area of high population density, the central region serves as a large market composed of 360 million people, possessing an industrial infra of considerable standards as well as an abundant low-income labor force. It is located in the center of major Chinese cities and is also close to the coastal region. In this aspect, the central region is being emphasized as the area for labor-intensive industries and export processing industries in China to move into, the proposition being supported by the presentation of various related policies. On the other hand, the coastal region, an area where many Korean companies have expanded to, presents worsened business environment in relation to lack of manpower, increased rent, strengthened environmental regulations, and industrial advancement, thus leaving green field-type investment companies with no other choice but to move their production base.   
Hereupon, this study analyzes the application possibility of the production base of the central region in China by examining whether the production factories of Korean SMEs that have expanded to the coastal region to achieve cost reduction and export processing can be moved to the central inland region and by observing which regions these factories can be moved to and which businesses present good prospects.
In this regard, this study selected 5 central cities (Zhengzhou, Xuchang, Hefei, Wuhu, Taiyuan) with favorable export environment that are located at a relatively close distance from the 3 coastal cities (Qingdao, Tianjin, Suzhou) that have the largest number of Korean manufacturing SMEs. And this study analyzed the cost reduction effect according to company transfer as well as the industrial network environment of central cities. The cost reduction effect was estimated in consideration of the reduction of labor cost, the greatest strength generated during company transfer, as well as the increase in transport cost, the greatest weakness. The industrial network environment was analyzed through the main industrial complexes in the relevant region.
According to this study, the cities with the largest cost reduction effect were presented as Tianjin of the coastal region and Xuchanag of the central region. As for Qingdao, cost was increased through moving to the remaining 3 cities in the central region excluding Zhengzhou and Xuchang. And the creation of industrial cluster was different according to city in the central region. Hereupon, companies that are considering to move their production base to the central China must analyze both cost reduction effect and industrial network environment. Furthermore, it is important to find a method by which SMEs can transfer in cooperation with the production chain of related businesses. Also, re-investment must be made to maintain the amount of cost reduction gained through moving to inland transfer at a “narrow superiority” in the aspects of technology and quality. In addition, to support companies that wish to transfer to the inland region or are currently examining the possibility of the transfer, the Korean government must construct matching platforms between coastal SMEs and central inland cities, monitor related information, such as the industrial development plan of main central cities, and strengthen technical cooperation with relevant local authorities in China.