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6 Special Report on the State of Business in South China

3. South China

Q: What are your company’s goals in South China?

1. Produce goods or services in South China for the China market Continuing the long-established trend, “Produce goods or
2. Produce goods or services in South China for markets other than services in South China for the China market” remains partici-
pant’s top goal in the region; the two other production-oriented
the U.S. and China results–“Produce goods or services in South China for markets
3. Produce goods or services in South China for the U.S. market other than the U.S. and China” and “Produce goods or services
4. Establish or expand a regional base in South China for the U.S. market”–also remain in the top five
5. Export from China to countries other than the U.S. priorities for participating companies. This year’s results, in fact,
6. Export from China to the U.S. are identical to those recorded last year. The only difference is
that “Export from China to countries other than the U.S.” and
“Export from China to the U.S.” tied for fifth with exactly same
11.6 percent.

Q: What are the major reasons for your company to set up operations in South China in-
stead of other China locations?

1. Opportunities in South China’s domestic market “Opportunities in South China’s domestic market” remains
2. Availability of highly qualified managers and specialists a top consideration for companies setting up operations in
3. Better infrastructure than other places in South China South China. While this year, “Availability of highly qualified
4. Proximity to Hong Kong managers and specialists” rose to the second place, taken the
5. Greater openness than other places in China place of “Proximity to Hong Kong”, which ranked fourth this
year. “Better infrastructure than other places in South China”
ranked the same this year while “Greater openness than other
places in China” dropped to the fifth place.

Q: How do you expect your company’s operations to change in the following areas over the
coming 3 years?

1. Services provided in China Response to this question are similar to those recorded in
2. China market share previous years, although “China market share” rose to rank
3. Competition from P.R.C. firms second, after “Services provided in China”. “Profits” exchanged
4. Profits place with “Overall Chinese business activities” to rank fourth
5. Overall China business activities this year. Taken as a whole, these results indicates that in 2016
multinational companies expect more expansion, and bigger
margin in the domestic Chinese market.

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