Page 13 - THE SOUTH CHINA BUSINESS JOURNAL
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pared with a year earlier, strong negative four years. Approximately half of the companies
impacts brought by US and Chinese tariffs on obtained over 30% of revenue from China. 63%
companies eased in 2021. Dr. Harley Seyedin of the companies found their revenue from China
said, “I am hopeful that the nomination of highly increase significantly or slightly in 2021 which
credentialled and experienced Nicolas Burns as returned to pre-COVID levels.
US ambassador to China will contribute to the
continuity, stability and sustainability of this The studies show that around 82% of the
critical relationship.” companies have already achieved profitability in
China in 2021, a slight reduction compared to
Despite below key points, the key takeaways the last three years. Nevertheless, 56% of them
of the 2022 White Paper on the Business reported to have met their budget expectations, a
Environment in China and the 2022 Special 7-percentage point uptick in comparison with the
Report on the State of Business in South previous year. However, fewer companies expect
China show companies still take a strong to reach profitability in a short period of time. An
interest in reinvesting in China despite its unprecedented situation can be noticed in this
economic slowdown. year’s report in which up to 12% of the companies
believe that it will take longer than six years to
More than 70% have reinvestment plans for become profitable.
2022, including 76% of American companies.
The percentage of companies with budgeted China is enjoying the highest popularity of
reinvestment of over 250 million US dollars in all time as one of the preferred investment
China increases from 5% in 2021 to 10% in 2022. destinations by an overwhelming majority of the
studied companies. Companies still have huge
It is estimated that companies will reserve 26.5 faith in the Chinese market, 77% of which chose
billion US dollars from profits for reinvestment to keep their investment in China in 2021. Not a
in China in 2022 and the next three to five years, single company showed intention to leave China
a dramatic increase of 45% compared to the completely. Noticeably, European and North
previous year. American markets have greater attractions for a
limited amount of shifted reinvestment this year.
Companies’ share of global annual revenue from
China went through a modest but mostly positive The business environment in South China shows
fluctuation in comparison with the previous an upward spiral of improvement in recent years.
SOUTH CHINA BUSINESS JOURNAL 10
impacts brought by US and Chinese tariffs on obtained over 30% of revenue from China. 63%
companies eased in 2021. Dr. Harley Seyedin of the companies found their revenue from China
said, “I am hopeful that the nomination of highly increase significantly or slightly in 2021 which
credentialled and experienced Nicolas Burns as returned to pre-COVID levels.
US ambassador to China will contribute to the
continuity, stability and sustainability of this The studies show that around 82% of the
critical relationship.” companies have already achieved profitability in
China in 2021, a slight reduction compared to
Despite below key points, the key takeaways the last three years. Nevertheless, 56% of them
of the 2022 White Paper on the Business reported to have met their budget expectations, a
Environment in China and the 2022 Special 7-percentage point uptick in comparison with the
Report on the State of Business in South previous year. However, fewer companies expect
China show companies still take a strong to reach profitability in a short period of time. An
interest in reinvesting in China despite its unprecedented situation can be noticed in this
economic slowdown. year’s report in which up to 12% of the companies
believe that it will take longer than six years to
More than 70% have reinvestment plans for become profitable.
2022, including 76% of American companies.
The percentage of companies with budgeted China is enjoying the highest popularity of
reinvestment of over 250 million US dollars in all time as one of the preferred investment
China increases from 5% in 2021 to 10% in 2022. destinations by an overwhelming majority of the
studied companies. Companies still have huge
It is estimated that companies will reserve 26.5 faith in the Chinese market, 77% of which chose
billion US dollars from profits for reinvestment to keep their investment in China in 2021. Not a
in China in 2022 and the next three to five years, single company showed intention to leave China
a dramatic increase of 45% compared to the completely. Noticeably, European and North
previous year. American markets have greater attractions for a
limited amount of shifted reinvestment this year.
Companies’ share of global annual revenue from
China went through a modest but mostly positive The business environment in South China shows
fluctuation in comparison with the previous an upward spiral of improvement in recent years.
SOUTH CHINA BUSINESS JOURNAL 10
