China News Service, Shanghai, September 23 (Reporter Jiang Yu) The "2021 China Business Environment Survey" report released on the 23rd by the American Chamber of Commerce in Shanghai and PricewaterhouseCoopers (China) shows that nearly 60% of the interviewed companies of the American Chamber of Commerce in Shanghai It is expected that its investment in China in 2021 will be higher than in 2020, a year-on-year increase of more than 30%.
In addition, up to 77.1% of surveyed US-funded companies have achieved profitability in 2020.
The survey received responses from 338 representatives of American Chamber of Commerce member companies in Shanghai. These American companies are located all over China.
The survey covered a series of topics such as business performance, business prospects, investment plans, operational challenges, staff size, and economic and trade policies.
According to the survey, 59.5% of the surveyed companies expect their investment in China in 2021 to be higher than the level in 2020, a significant increase of 30.9 percentage points year-on-year; 77.1% of the surveyed companies will achieve profitability in 2020, which is the same level as in recent years Basically the same; 82.2% of the surveyed companies expect their revenue in 2021 to increase compared to last year; 69.7% of the surveyed companies expect that their revenue growth in China will surpass the performance of other global markets in the next three to five years.
After the outbreak of the new crown epidemic last year, there were predictions that US-funded companies in China would relocate production lines/supply chains, or relocate (part of) their production activities/supply chains in China to overseas regions. However, this investigation report did not confirm this. statement.
Among the 125 US-funded companies surveyed engaged in manufacturing in China, 72% have no plans to move any production out of China in the next three years.
Among the remaining 28% of companies that do have plans to transfer production, only two companies (1.6%) intend to transfer all production activities in the next three years.
The investigation also revealed that no company plans to transfer its production activities in China back to the United States.
“China’s business environment recovered rapidly after the epidemic was brought under control last year. However, some of the effects of the spread of the epidemic are still continuing. For example, the normal operations of the member companies interviewed are still troubled by restrictions on entry and exit of employees. In general, members Companies have performed well in China," said Ker Gibbs, president of the American Chamber of Commerce in Shanghai.
Yuan Zunhua, the managing partner of PwC's China-US Multinational Business Department, added: "For many US companies in China who are optimistic about the future development of the Chinese market, formulating a comprehensive and reasonable China strategy remains their top priority. With the increase in the expected investment scale in 2021, we also expect that more companies will concentrate on prioritizing investment in sales and marketing and digital technology industries to win the favor of Chinese consumers.” (End)Keywords: