US firms find China profitable
By Wang Yanlin |
January 20, 2011, Thursday
|
Print Edition
Print Edition
UNITED States companies in China performed profitably in 2010 and are optimistic about their business prospects moving forward, according to a report released yesterday by the American Chamber of Commerce in Shanghai.
According to the report, 87 percent of US companies in China saw their revenues grow last year. Comparative figures were 47 percent in 2009 and 77 percent in 2008.
Profitable American companies in China last year accounted for 79 percent of respondents, up from 65 percent in 2009 and 70 percent in 2008. Also, 61 percent of them stated that they gained a bigger market share in China last year.
Looking ahead, China is the top priority for 20 percent of US companies and about 90 percent of the respondents forecast a revenue increase this year. An "in China for China" strategy was one of the key characteristics shared by US companies which scored highly last year.
Although showing impressive financial results, US companies said finding qualified staff was difficult - they regarded it as the No. 1 challenge and said competition was rising between US and other foreign companies and between the US and Chinese firms.
"This year's survey results indicate that US companies in China have come to expect challenges in the Chinese market, have weighed them against opportunities and have found a way to succeed despite them," said Brenda Foster, president of AmCham Shanghai.
"Nonetheless, it is essential that the US continues to aggressively engage China to address key business challenges that hinder market access today and could impact future investment," Foster said.
The report said regulatory issues remained the biggest hurdle for investors. About 48 percent of companies surveyed viewed the regulatory environment in which their industry operates as "not changing" over the past year, and 15.2 percent even said it was "deteriorating." Nearly half said regulations favor Chinese firms.
According to the report, 87 percent of US companies in China saw their revenues grow last year. Comparative figures were 47 percent in 2009 and 77 percent in 2008.
Profitable American companies in China last year accounted for 79 percent of respondents, up from 65 percent in 2009 and 70 percent in 2008. Also, 61 percent of them stated that they gained a bigger market share in China last year.
Looking ahead, China is the top priority for 20 percent of US companies and about 90 percent of the respondents forecast a revenue increase this year. An "in China for China" strategy was one of the key characteristics shared by US companies which scored highly last year.
Although showing impressive financial results, US companies said finding qualified staff was difficult - they regarded it as the No. 1 challenge and said competition was rising between US and other foreign companies and between the US and Chinese firms.
"This year's survey results indicate that US companies in China have come to expect challenges in the Chinese market, have weighed them against opportunities and have found a way to succeed despite them," said Brenda Foster, president of AmCham Shanghai.
"Nonetheless, it is essential that the US continues to aggressively engage China to address key business challenges that hinder market access today and could impact future investment," Foster said.
The report said regulatory issues remained the biggest hurdle for investors. About 48 percent of companies surveyed viewed the regulatory environment in which their industry operates as "not changing" over the past year, and 15.2 percent even said it was "deteriorating." Nearly half said regulations favor Chinese firms.
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