Page 20 - The South China Business Journal
P. 20
C. Today
Sales ReU.bS.fooCruomnpadnies in China
American companies have seen improved in the last year. Profit margins in China
Top 10 challenges for sales performance in China over the last versus operations in the rest of the world
year, but full market access continues to be are mixed – one-third report their China
American companies in a challenge for many American companies, operations do better than their operations
China according to the US-China Business Council’s in other markets, one-third worse, one-
(USCBC) most recent annual member survey. third the same.
1. Competition with Those issues, combined with uncertainties
Chinese companies about China’s policies toward foreign • Biggest restraints on profitability?
companies, are undermining American Domestic competition, for the sixth year
2. Licenses and approvals companies’ confidence in China’s market. in a row. No. 2 is government policies/
3. Investment barariers regulation, No. 3 is rising costs.
4. Uneven enforcement “The China market delivered improved
5. IPR enforcement sales for American companies in the past • 68 percent say growth prospects in China
6. Cybersecurity year for companies with market access,” are better than in other markets around the
7. Cost increases said USCBC president John Frisbie. “At world; only 9 percent said they are worse.
8. US-China relations the same time, most of the regulatory
9. Data flow barriers challenges that companies face each day But the survey reports that challenges remain:
10. Capital controls did not see improvement this year. The
stagnation in implementation of needed • 40 percent of companies are less
20 AmCham South China economic reforms are undermining optimistic about the business climate than
confidence among American companies three years ago; only 11 percent are more
that their concerns will be addressed.” optimistic. The main reason: China’s policy
environment. 57 percent have seen no
Frisbie continued, “These are all impact from economic reforms announced
issues that China has talked about 4 years ago.
addressing. Implementing genuine
market liberalizations and addressing • Tech transfer requirements to gain access
discriminatory treatment against foreign to the China market is an acute issue for
companies is essential, not only to rebuild those who face it; nearly 20 percent of
business confidence, but to ensure that companies in the survey have been asked
US-China commercial relations remain on to transfer technology during the past three
sure footing.” years. JV requirements and government
approvals provide leverage to China.
Positive findings from the survey:
• 94 percent of respondents remain concerned
• Sales growth is slowing overall in line about intellectual property (IP) protection.
with China’s rate of GDP growth slowing,
but 40 percent of respondents still saw • A high-standard bilateral investment
double-digit sales growth last year. treaty (BIT) with China would positively
address each of the top 5 challenges.■
• 64 percent of companies saw improved
profitability in their China operations
Sales ReU.bS.fooCruomnpadnies in China
American companies have seen improved in the last year. Profit margins in China
Top 10 challenges for sales performance in China over the last versus operations in the rest of the world
year, but full market access continues to be are mixed – one-third report their China
American companies in a challenge for many American companies, operations do better than their operations
China according to the US-China Business Council’s in other markets, one-third worse, one-
(USCBC) most recent annual member survey. third the same.
1. Competition with Those issues, combined with uncertainties
Chinese companies about China’s policies toward foreign • Biggest restraints on profitability?
companies, are undermining American Domestic competition, for the sixth year
2. Licenses and approvals companies’ confidence in China’s market. in a row. No. 2 is government policies/
3. Investment barariers regulation, No. 3 is rising costs.
4. Uneven enforcement “The China market delivered improved
5. IPR enforcement sales for American companies in the past • 68 percent say growth prospects in China
6. Cybersecurity year for companies with market access,” are better than in other markets around the
7. Cost increases said USCBC president John Frisbie. “At world; only 9 percent said they are worse.
8. US-China relations the same time, most of the regulatory
9. Data flow barriers challenges that companies face each day But the survey reports that challenges remain:
10. Capital controls did not see improvement this year. The
stagnation in implementation of needed • 40 percent of companies are less
20 AmCham South China economic reforms are undermining optimistic about the business climate than
confidence among American companies three years ago; only 11 percent are more
that their concerns will be addressed.” optimistic. The main reason: China’s policy
environment. 57 percent have seen no
Frisbie continued, “These are all impact from economic reforms announced
issues that China has talked about 4 years ago.
addressing. Implementing genuine
market liberalizations and addressing • Tech transfer requirements to gain access
discriminatory treatment against foreign to the China market is an acute issue for
companies is essential, not only to rebuild those who face it; nearly 20 percent of
business confidence, but to ensure that companies in the survey have been asked
US-China commercial relations remain on to transfer technology during the past three
sure footing.” years. JV requirements and government
approvals provide leverage to China.
Positive findings from the survey:
• 94 percent of respondents remain concerned
• Sales growth is slowing overall in line about intellectual property (IP) protection.
with China’s rate of GDP growth slowing,
but 40 percent of respondents still saw • A high-standard bilateral investment
double-digit sales growth last year. treaty (BIT) with China would positively
address each of the top 5 challenges.■
• 64 percent of companies saw improved
profitability in their China operations
