Around 82 percent of U.S. firms in China will continue to raise their investment in the world's second-largest economy this year, but the pace of the increase is expected to be moderating, according to a survey made by the American Chamber of Commerce in China (AmCham China) over its 390 member companies.
The percentage of those gearing to boost investment 21 percent or more declined, likely a response to slower economic growth and rising costs in China.
Meanwhile, 76 percent of the respondents forecast their 2012 revenues to surpass those of 2011, and 68 percent expect their China operating margins to be more than their worldwide operating margins.
But many hurdles remain. The survey showed foreign businesses continue to struggle with challenges related to the local talent pool and intellectual property rights.
"Many of our members also noted concerns about substantial increases in costs. The reasons include rapid increases in wages as well as the cost of benefits under the new social insurance law," said Ted Dean, Chairman of AmCham China.
China's logistics industry will continue reeling from waning demand and rising oil prices, said the China Federation of Logistics and Purchasing (CFLP).
In the first two months of 2012, the country's social logistics value rose 10.6 percent year on year to 23.5 trillion yuan ($3.73 trillion), but the growth rate was down 3.9 percentage points from a year ago.
A domestic economic slowdown amid the global downturn and tepid logistics activities after the Spring Festival holiday (January 23- 29) were the main reasons for the drop, the CFLP said.
Meanwhile, logistics costs in the first two months increased 12.3 percent to 1.3 trillion yuan ($206.3 billion), of which transportation costs went up 11.8 percent to 700 billion yuan ($111.1 billion).