Page 17 - SCBJ-201612
P. 17
November 2016
American Companies in China
Are Cutting Expenses
But Not Pulling Out
By AmCham South China Media Staff
China’s growth slowdown is impacting American China remains a priority market for American companies.
company financials and market sentiment, according to “Ninety percent of companies say China growth prospects are
the US-China Business Council’s (USCBC) annual Member the same or better than other emerging markets,” says USCBC
Survey report, which captures how American companies view president John Frisbie. “To the American business community,
the changing business environment in China, including the there’s no ignoring the second largest economy in the world.”
country’s economic slowdown, operational challenges, and
questions about policy direction. Of the Top 10 challenges, six would be improved by a high-
standard US-China Bilateral Investment Treaty.
The report show that nearly 20 percent of respondents expect
revenue to decline this year, though two-thirds anticipate “I anticipate that the ongoing negotiations on the bilateral
continued growth. investment treaty will be high on the agenda for President
Obama’s meeting with President Xi Jinping in early September
Companies are responding by doing what would be expected in China,” adds Frisbie.
- cutting costs, slowing investment, controlling hiring, but not
pulling out. USCBC estimates that China is a $400 billion market for US
companies — tied with Mexico as the second-largest foreign
Despite slowing revenue growth, 90 percent of companies markets for American goods, services, and farm products after
surveyed remain profitable, but at reduced rates that Canada — but it should be more.
reflect increasing competition, rising costs, and regulatory
impediments. Addressing market access, intellectual property protection,
and level-playing field concerns in China must continue to be a
Business confidence continues to soften. Almost three-quarters priority during the remainder of the Obama administration and
of companies have an optimistic or somewhat optimistic five- the next president.
year outlook, the lowest total over the past decade. Pessimism
remains low (10%), however.
The report also finds that uncertainty about China’s economic
reform policies is undermining business confidence. Even so,
15
American Companies in China
Are Cutting Expenses
But Not Pulling Out
By AmCham South China Media Staff
China’s growth slowdown is impacting American China remains a priority market for American companies.
company financials and market sentiment, according to “Ninety percent of companies say China growth prospects are
the US-China Business Council’s (USCBC) annual Member the same or better than other emerging markets,” says USCBC
Survey report, which captures how American companies view president John Frisbie. “To the American business community,
the changing business environment in China, including the there’s no ignoring the second largest economy in the world.”
country’s economic slowdown, operational challenges, and
questions about policy direction. Of the Top 10 challenges, six would be improved by a high-
standard US-China Bilateral Investment Treaty.
The report show that nearly 20 percent of respondents expect
revenue to decline this year, though two-thirds anticipate “I anticipate that the ongoing negotiations on the bilateral
continued growth. investment treaty will be high on the agenda for President
Obama’s meeting with President Xi Jinping in early September
Companies are responding by doing what would be expected in China,” adds Frisbie.
- cutting costs, slowing investment, controlling hiring, but not
pulling out. USCBC estimates that China is a $400 billion market for US
companies — tied with Mexico as the second-largest foreign
Despite slowing revenue growth, 90 percent of companies markets for American goods, services, and farm products after
surveyed remain profitable, but at reduced rates that Canada — but it should be more.
reflect increasing competition, rising costs, and regulatory
impediments. Addressing market access, intellectual property protection,
and level-playing field concerns in China must continue to be a
Business confidence continues to soften. Almost three-quarters priority during the remainder of the Obama administration and
of companies have an optimistic or somewhat optimistic five- the next president.
year outlook, the lowest total over the past decade. Pessimism
remains low (10%), however.
The report also finds that uncertainty about China’s economic
reform policies is undermining business confidence. Even so,
15
