(MENAFN- AzerNews) The majority of 183 companies studied are optimistic about the
growth of the Chinese market, according to a report released by the
American Chamber of Commerce in South China (AmCham South China) on
Tuesday, Azernews reports, citing Xinhua.
Of these companies, 76 percent plan to reinvest in China in
2024. For those who have plans for reinvestment in China in 2024,
45 percent state that their primary area of investment focuses on
sales, marketing and business development. Other key areas include
research and development, automation and productivity development,
according to the report.
The annual special report on the state of business in south
China is regarded as an important window into China's business
environment. This year marks the 20th release of the report by
AmCham South China.
The enterprises studied by the report come from the United
States, China, the European Union and other countries and regions,
of which wholly foreign-owned enterprises account for more than
half. American companies represent nearly half of the businesses
studied.
Eighty-six percent of the companies studied claim that they will
not decouple from the Chinese market due to the trade tensions
between China and the United States. In 2023, 62 percent of the
companies studied chose not to shift their investments out of
China. Sixty-six percent of American companies claim that they will
remain committed to the Chinese market, representing the highest
proportion of all businesses studied.
Potential growth of the Chinese market is the primary driver for
increasing investments in China or shifting investments from other
markets to China, followed by industrial cluster effect and
preferential policies, said Harley Seyedin, president of AmCham
South China.
Over half of the companies studied believe that their overall
return on investment (ROI) in China is better, compared with their
overall return on global investment. Eighty-eight percent of the
companies studied have already made profits in China, among which
46 percent reported to have met their budget expectations.
Moreover, 90 percent of American companies have achieved
profitability in China, according to the report.
Fifty-seven percent of the studied foreign companies consider
China one of their top three investment locations, an increase of 5
percent from 2022. Guangzhou, the capital city of Guangdong
Province and known as south China's manufacturing hub, has
maintained its status as the top investment destination in the
country for seven consecutive years, followed by Shenzhen, Shanghai
and Beijing.
The proportion of companies that consider the overall business
environment in south China as "excellent" or "good" grew by 1
percent to 75 percent. Over half of the companies studied see an
improvement in the business environment in south China, an uptick
of 5 percent compared with 2022, said the report.
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