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ER STORY South China Business Journal
CiMGnhruteilnhateteinseDeratiECrioceooncntnafiloiodsmneSynhocfoew
2016 Reinvestment Budgets Up 8.79%
GUANGZHOU, CHINA – March 1, 2016 – The American “It is clear that China needs to put growth
Chamber of Commerce in South China (AmCham South
China) today released its 2016 White Paper on the Business on a sustainable track and that there
Environment in China and 2016 Special Report on the State of needs to be renewed efforts for economic
Business in South China. restructuring. “
The 322-page White Paper, now in its eighth year, presents a by Harley Seyedin, President of The American
highly-researched, exhaustively-cited account of the on-the- Chamber of Commerce in South China
ground business environment in China and argues for the
nation’s leadership to “Keep moving forward and accelerate the 83 percent of participants ranked the business environment
pace” of economic reform. in South China as “Good/acceptable”, “Very good” or
“Outstanding”; meanwhile, 37.6 percent of participants felt the
The 2016 Special Report on the State of Business, meanwhile, business environment had improved over the past 12 months.
aggregates and analyzes the experiences of the 246 companies Approximately 82 percent of participants reported having hired
who participated in the chamber’s annual State of Business additional employees to take advantage of the labor market; in
Study. This year 75.6 percent of participants reported that their total, the chamber estimates that this resulted in its members
primary business focus was providing goods or services to the hiring 993,506 new employees across China.
Chinese market, while only 24.4 percent reported a primary
focus of manufacturing for export. Reinvestment budgets appear to be recovering from the 2015
slump which was associated with multinationals perception
While the two studies show modest but continuous progress of targeting and or unequal treatment. The participating
in the implementation of needed reforms, cautious optimism companies have increased their reinvestment budgets for 2016
is seen by the business community in the direction of by 8.79 percent. However, the reports see a similar percentage
China’s economy. They also clearly demonstrate the need for decline in reinvestment budgets over the coming three years,
accelerated reforms. The most promising action by the Chinese indicating uncertainty in the medium term. AmCham South
leadership is its move to introduce “Supply-Side Economic China member companies stand to reinvest from profits more
Reforms”, a subject which is addressed in detail in the White than $13 billion in 2016.
Paper. Harley Seyedin, President of AmCham South China said,
“It is clear that China needs to put growth on a sustainable
track and that there needs to be renewed efforts for economic
restructuring. Therefore, we feel that the Chinese leadership’s
call for “supply-side economic reform”, announced in late
2015 as a strategic framework for the 13th Five-Year Plan, is
particularly timely.”
6
CiMGnhruteilnhateteinseDeratiECrioceooncntnafiloiodsmneSynhocfoew
2016 Reinvestment Budgets Up 8.79%
GUANGZHOU, CHINA – March 1, 2016 – The American “It is clear that China needs to put growth
Chamber of Commerce in South China (AmCham South
China) today released its 2016 White Paper on the Business on a sustainable track and that there
Environment in China and 2016 Special Report on the State of needs to be renewed efforts for economic
Business in South China. restructuring. “
The 322-page White Paper, now in its eighth year, presents a by Harley Seyedin, President of The American
highly-researched, exhaustively-cited account of the on-the- Chamber of Commerce in South China
ground business environment in China and argues for the
nation’s leadership to “Keep moving forward and accelerate the 83 percent of participants ranked the business environment
pace” of economic reform. in South China as “Good/acceptable”, “Very good” or
“Outstanding”; meanwhile, 37.6 percent of participants felt the
The 2016 Special Report on the State of Business, meanwhile, business environment had improved over the past 12 months.
aggregates and analyzes the experiences of the 246 companies Approximately 82 percent of participants reported having hired
who participated in the chamber’s annual State of Business additional employees to take advantage of the labor market; in
Study. This year 75.6 percent of participants reported that their total, the chamber estimates that this resulted in its members
primary business focus was providing goods or services to the hiring 993,506 new employees across China.
Chinese market, while only 24.4 percent reported a primary
focus of manufacturing for export. Reinvestment budgets appear to be recovering from the 2015
slump which was associated with multinationals perception
While the two studies show modest but continuous progress of targeting and or unequal treatment. The participating
in the implementation of needed reforms, cautious optimism companies have increased their reinvestment budgets for 2016
is seen by the business community in the direction of by 8.79 percent. However, the reports see a similar percentage
China’s economy. They also clearly demonstrate the need for decline in reinvestment budgets over the coming three years,
accelerated reforms. The most promising action by the Chinese indicating uncertainty in the medium term. AmCham South
leadership is its move to introduce “Supply-Side Economic China member companies stand to reinvest from profits more
Reforms”, a subject which is addressed in detail in the White than $13 billion in 2016.
Paper. Harley Seyedin, President of AmCham South China said,
“It is clear that China needs to put growth on a sustainable
track and that there needs to be renewed efforts for economic
restructuring. Therefore, we feel that the Chinese leadership’s
call for “supply-side economic reform”, announced in late
2015 as a strategic framework for the 13th Five-Year Plan, is
particularly timely.”
6
