Page 13 - 2021 Special Report

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the number of very large planned reinvestments. While ???憿寧?嚗?100銝?????2.5鈭輻????憓??嚗????????憸??
total dollar amount of budgeted reinvestments has held 靽??蝔喳?嚗??????2.5鈭輻???誑銝???孵之??????憿寧??渲噢
steady due to the increase in number of large, medium ?唬?餈?僑?亦???雿??潘??????韏??銝??瘥??撠?4/5嚗??韏??
and small reinvestment projects (between 1 million and 銝??撠??3/4嚗????隞??瘚??餈??撖嫣葉?賜??園???鈭批????
250 million US dollars each), the number of very large 銝仿???蔣???霂亙蔣???撠??蝏?舅?唬?撟氬???銝?甈∠掩隡潭???
foreign planned reinvestment projects involving 250 ?????2016撟氬????2017撟游?????箇?瘚???萇?????????
million US dollars or more each have reached the lowest 瘚???函??????????銝??蝏??撠??2018撟游?2019撟游???
levels in several years (a 4/5th reduction year on year for all ?曄?嚗?DP憓?????2018撟湧???6.6嚗????2019撟湧???6.1
foreign companies and nearly 3/4th for US companies). We 嚗????
predict that this will severely impact China?? manufacturing
output two to three years from now. The last time a similar 繚餈?????霈蹂?銝?”蝷箔?隞????2021撟渡誧蝏?????
situation happened was in 2016. Our 2017 study predicted 銵?????,銝? ?典??拇隋???韏??蝞??撠?噢??183鈭輻?????
the pre COVID-19 slowdown in China?? economic growth in
2018 and 2019 (GDP growth dropped to 6.6% in 2018 and 繚撠賜?2020撟港葉?賜?瘚???踵?蝻??餈????僑?唬?嚗??
6.1% in 2019). 餈????????隡??隞??2021撟湔?????????縑敹???

繚Roughly 70% of the studied companies expect 繚憭折????霈蹂?銝??????乩?撟游????撘???嗉?????
to reinvest in China in 2021, with volume of budgeted 鈭?????????賢蒂?仿???蔣??????銝?僑?典??拙????銝?
reinvestment from profits in China estimated to reach 瘥??颲曉?鈭?僑?湔?雿????
US$18.3 billion.
繚撟踹?餈?賒??僑?冽?隞??靚??銝?????隡????蛹????
繚Nearly half of the participating companies show 甈Ｚ????韏??撣???嗆????瘚瑯??楛?喋???鈭????隞??撣?????
confidence in employment expansion despite the fact that ??????賬???瘚瑚?撘?憪??撘??韏????瘜冽???
China?? economic growth reached an all-time low in nearly
three decades in 2020. 繚2020撟游?????箄????憓??蝏?????颱????銝??
頞????????銝??銝??????交????鈭箏?韏?????嚗?誑??撩
繚A vast majority of companies still have expansion 銋???潛?鈭箸?隞?????銝??????啣????????葩??艇撜?
plans in China in the next three years. Nevertheless, in ?????
view of the long-term impact brought by COVID-19, the
proportion of companies expanding in China in the next 繚憭折????霈蹂?銝?”蝷箇?霂????????蝏??銝????
three years hit a new low compared to the past five years. 撣??鈭???Ｙ?敶勗?嚗??銝?????隡?????銝??蝑曇????銵?
?????蔣???撠?????隡?????蝢??蝑曇????銵??敶勗???
繚Guangzhou is selected as the number one
preferred reinvestment destination in China, which 繚???????????隡??銵函內銝????蛹銝??韐豢??拇?
remains unchanged for four consecutive years, followed ????冽?蝳颱葉?踝?撟嗡??貉?敺?撟湛????隡??撖?2021撟渡?銝?
by Shanghai, Shenzhen, and Beijing. Other cities including ?喟頂????港蛹銋????
Dongguan, Chengdu, and Zhuhai are found to attract
investors?? interest.

繚2020 has witnessed a steady upswing in business
environment in South China. However, companies report
that rising operation and labor costs as well as, lack of
qualified personnel are three serious challenges for
development in South China.

繚An overwhelming majority of companies state that
visa and travel restrictions have an adverse impact on their
operation. Over 50% of them were affected by China?? visa
and travel restrictions while approximately 40% of them
were influenced by American restrictions.

繚Nearly all the studied companies express their
willingness to stay in China despite US-China trade friction.
Compared to the previous year, more companies firmly
believe that they will see further improvement in US-China
relations in 2021.

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