More than 90 American companies had an optimistic business outlook on China, up 80.7 percent in 2008, said the American Chamber of Commerce in China (AmCham China) releasing the 2010 China Business Climate Survey on April 2. The survey covered 388 member firms of the chamber.
This reflects the perception that China has emerged from the downturn in a solid position and that China's medium-term outlook is quite strong, said Christian Murck, President of AmCham China.
Nearly half of respondents reported comparatively higher China margins in 2009 than they saw worldwide, an increase from 35 percent in 2008.
"American companies are finding that their performance in China is the bright spot in an otherwise difficult global picture," said J. Norwell Coquillard, Chairman of AmCham Shanghai.
While many companies put investments and expansion on hold in 2009, almost 80 percent of American businesses in China plan to increase their investment in 2010.
As in past years, the survey data illustrate there is a strong positive correlation between levels of profitability and a company's length of time operating in China. This reflects that unprofitable companies tend to leave the market, and also the increased profitability of U.S. companies as they become increasingly familiar with the Chinese market.
The local regulatory environment became the most problematic business challenge of this year while increasing labor costs and employing skilled workers and managers remained acute concerns for the surveyed companies, said the chamber. |