As most people would agree, Kunming does offer many benefits that the other 15 smaller capitals in Yunnan do not. However, there is great potential for foreigners to start up a small business in the other cities.

I would like to find a place to get away from the winter cold and Dehong and Liuku seem to be the best places for a winter hideout. My vote for a good place to live in Yunnan is Liuku, Nujiang.

1 - Liuku has WARM weather year round (10-20 C), while Kunming (1-5 C) is in the single digits and teens.

www.weather.com.cn/html/province/yunnan.shtml

2 - Liuku has very clean WATER and it does not get much pollution from the north.

3 - Liuku has inexpensive ELECTRICITY from the many hydroelectric plants along the river.

what kind of business opportunities is there great potential for foreigners to start?

what's the health care like?

I am not an old and decrepit curmudgeon so health care is not issue for me. Bars, Metro, Carre Four and Walmart are not important to me. Eating western food is not important to me. I have a home in Dali so it is no longer an option for me.

Since there are not many foreigners in the other cities, I think it may be easier for some expats to explore some business opportunities.

Hoping to hear if anyone else has some other locations in Yunnan and reasons why.

Jianshui has potential.

It is a city that seems to have a well established economy.

The highway net work is now good, further feeding the local economy.
Tourism is growing, but it is not the coach party type.

F&B industry is growing, including a recently opened luxury hotel, and numerous guest houses and restaurants.

The local culture is influenced by its Confucian past. There seems to be a good work ethic and service culture. This is important if you are in a customer facing business.
There are language schools established. This can help if you are looking for bi-lingual staff, or if you are thinking of working in that sector.
Living there? The air is clean, the city is clean, and there is beatiful scenery. As for food, there is a lot of local produce for sale in the city. The weather is also warmer than Kunming. The city is about 4.5 hours drive, almost due south, from Kunming and so you are not remote.

Yes, that is also another good choice, not to mention the proximity to Vietnam as another advantage, especially for those people with a visa that requires them to leave China every so often. The new train line also makes travelling back to Kunming a bit easier. Also close proximity to several tourist locations such as Shiping Old Town, Yuan Yang, A lu Cave in Luxi, Mile City, and Hani minority. Good One!!!

Jinghong will still outgrow everyone in the south economically. That leads to more potential business opportunities, but brings along congestion, air pollution, and rising real estate and niubi wealth that erodes traditional culture. Those might be the things expats who desire to leave Kunming are trying to avoid. But it is warm and Dai people know how to cook!

Minor problem with Jinghong is the doubled level of laziness and lack of service.

Have you been to Shaxi? It is a beautiful little village close to Dali, with a Bai majority. The people are very friendly and great, and the village is charming, with great background scenery.

I am not okay with leaning on 'traditional cultures' and planning them out of existence by those with unrepresentative power, but they all change thanks to changes in technology, & economic & social arrangements. This is not necessarily bad, it all has to do with respect for and empowerment of the people concerned.

hijack, nothing to do with the original topic