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AmCham: US companies optimistic about Chinese operations
By Wang Yanlin |
February 28, 2013, Thursday
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Online Edition
Online Edition
A record number of US companies said they are optimistic about their Chinese operations even though, overall, business dipped for a second year in a row in 2012, a survey showed today.
Of the 420 companies surveyed, a record 91 percent said they were "optimistic" or "slightly optimistic" about their five-year business prospects in China, according to the 2012-2013 China Business Report produced by the American Chamber of Commerce in Shanghai.
However, the survey also said 73 percent of US companies in China were profitable last year, declining from 78 percent in 2011 and 79 percent the year before.
For the second-year in a row, American businesses experienced a dip in year-on-year performance indicators, including profitability, revenue and operating margins, the survey said.
"We should no longer expect China's economy to grow at the same double-digit rates of years past," said Brenda Foster, president of AmCham Shanghai.
"Steadily rising costs, human resource constraints and an increasingly competitive environment will also be the rule rather than the exception in the years ahead."
But US companies remain committed to the China market, Foster said, because China is critical to their global strategies.
Regardless of industry, China is an increasingly vital market for most American businesses competing here, the survey report said.
Although performance leveled off in 2012, more than 40 percent of companies reported higher margins in China than their companies' margins globally and nearly two-thirds said China revenue growth was greater than worldwide revenue growth.
In addition, nearly 75 percent of companies said they plan to increase investment this year, the highest mark recorded in the last three years of the survey.
Foster said China continues to offer American businesses tremendous opportunities.
Of the 420 companies surveyed, a record 91 percent said they were "optimistic" or "slightly optimistic" about their five-year business prospects in China, according to the 2012-2013 China Business Report produced by the American Chamber of Commerce in Shanghai.
However, the survey also said 73 percent of US companies in China were profitable last year, declining from 78 percent in 2011 and 79 percent the year before.
For the second-year in a row, American businesses experienced a dip in year-on-year performance indicators, including profitability, revenue and operating margins, the survey said.
"We should no longer expect China's economy to grow at the same double-digit rates of years past," said Brenda Foster, president of AmCham Shanghai.
"Steadily rising costs, human resource constraints and an increasingly competitive environment will also be the rule rather than the exception in the years ahead."
But US companies remain committed to the China market, Foster said, because China is critical to their global strategies.
Regardless of industry, China is an increasingly vital market for most American businesses competing here, the survey report said.
Although performance leveled off in 2012, more than 40 percent of companies reported higher margins in China than their companies' margins globally and nearly two-thirds said China revenue growth was greater than worldwide revenue growth.
In addition, nearly 75 percent of companies said they plan to increase investment this year, the highest mark recorded in the last three years of the survey.
Foster said China continues to offer American businesses tremendous opportunities.
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