Page 9 - THE SOUTH CHINA BUSINESS JOURNAL
P. 9
ions, and APEC countries (other than mainland • Willingness to reinvest in China is expected
China), job losses in those countries as a result of
disruption in the supply chain will be substantial. to remain strong in the next three years. 68% of
companies plan to reinvest in 2020.
‘It will require a coordinated international series of
actions to minimize the impact of disruption in the • Guangzhou has once again been rated as the top
supply chain. Today’s events prove we need each
other as no one country can do it alone” said Harley spot of reinvestment destination in China handily
Seyedin, President of the American Chamber of beating Beijing, Shanghai and Shenzhen.
Commerce in South China.
• Business environment in South China showed a
The 2020 White Paper and the 2020 Special Report
on the State of Business in South China provided steady rising trend.
some reassuring news:
•Fierce local competition and rising operating
• “In China, for China” is still the primary strategy
costs were reported as constant challenges for
for most foreign companies operating in China. studied foreign companies operating in South
China.
• Although approximately one fifth of surveyed
• Most of the studied companies were optimistic
companies reduced their headcounts to various
degrees in 2019, most of the respondents seem to about the Greater Bay Area Action Plan, however
be confident in increasing headcounts in 2020. there was a slight reduction in companies
considering Ten Measures for Attracting Foreign
• Relatively stable revenue, profitability, and Investment and the intellectual property court
usefulness.
return on investment in China were maintained by
most of the studied companies. While in 2019 more • Optimism towards US-China trade relations
US companies witnessed decline in revenues from
China than their counterparts, their profitability was low in this research. Even after the first phase
was better than the others. For those not yet of Trade Agreement was signed, an overwhelming
profitable, the estimated length of time for reaching majority believe the dispute was likely to escalate
profitability was slightly longer than previous years. in 2020. Compare with their Chinese counterpart,
more US companies reported that they had been
• US companies providing consumption products hurt in the trade tension, particularly reflected by
their lost market share.
and services remain positive and maintain high
optimism in China’s market growth. South China Business Journal 6
• China is considered as one of the top three
investment destination in the world by more
than half of surveyed companies, even though
its attractiveness as the top global investment
destination and manufacturing base has decreased
slightly.
• Steady year-on-year growth of reinvestment in
China was seen in 2019. Studied companies with
reinvestment budgets of less than US$50 million
in 2019 realized their reinvestment in China as
planned. In addition more than one fourth of US
companies reinvested more than US$50 million
each in 2019 to expand operations.
China), job losses in those countries as a result of
disruption in the supply chain will be substantial. to remain strong in the next three years. 68% of
companies plan to reinvest in 2020.
‘It will require a coordinated international series of
actions to minimize the impact of disruption in the • Guangzhou has once again been rated as the top
supply chain. Today’s events prove we need each
other as no one country can do it alone” said Harley spot of reinvestment destination in China handily
Seyedin, President of the American Chamber of beating Beijing, Shanghai and Shenzhen.
Commerce in South China.
• Business environment in South China showed a
The 2020 White Paper and the 2020 Special Report
on the State of Business in South China provided steady rising trend.
some reassuring news:
•Fierce local competition and rising operating
• “In China, for China” is still the primary strategy
costs were reported as constant challenges for
for most foreign companies operating in China. studied foreign companies operating in South
China.
• Although approximately one fifth of surveyed
• Most of the studied companies were optimistic
companies reduced their headcounts to various
degrees in 2019, most of the respondents seem to about the Greater Bay Area Action Plan, however
be confident in increasing headcounts in 2020. there was a slight reduction in companies
considering Ten Measures for Attracting Foreign
• Relatively stable revenue, profitability, and Investment and the intellectual property court
usefulness.
return on investment in China were maintained by
most of the studied companies. While in 2019 more • Optimism towards US-China trade relations
US companies witnessed decline in revenues from
China than their counterparts, their profitability was low in this research. Even after the first phase
was better than the others. For those not yet of Trade Agreement was signed, an overwhelming
profitable, the estimated length of time for reaching majority believe the dispute was likely to escalate
profitability was slightly longer than previous years. in 2020. Compare with their Chinese counterpart,
more US companies reported that they had been
• US companies providing consumption products hurt in the trade tension, particularly reflected by
their lost market share.
and services remain positive and maintain high
optimism in China’s market growth. South China Business Journal 6
• China is considered as one of the top three
investment destination in the world by more
than half of surveyed companies, even though
its attractiveness as the top global investment
destination and manufacturing base has decreased
slightly.
• Steady year-on-year growth of reinvestment in
China was seen in 2019. Studied companies with
reinvestment budgets of less than US$50 million
in 2019 realized their reinvestment in China as
planned. In addition more than one fourth of US
companies reinvested more than US$50 million
each in 2019 to expand operations.
