Welcome!

News Feed Item

American Companies Confident in China's Path to Reform

AmCham South China Members' 2014 Reinvestment Budgets for Expansion Grow 30% to Reach $13BN

GUANGZHOU, China, Feb. 25, 2014 /PRNewswire/ -- The American Chamber of Commerce in South China (AmCham South China) today released its 2014 Special Report on the State of Business in South China and 2014 White Paper on the Business Environment in China.

(Photo: http://photos.prnasia.com/prnh/20140226/0861401020-a )

(Photo: http://photos.prnasia.com/prnh/20140226/0861401020-b )

"I think the key take away from our latest research is that private enterprises are 100 percent behind President Xi and his colleagues in the Politburo," said AmCham South China President Harley Seyedin. "We all have tremendous confidence in the ability and dedication of these men as they guide China toward a brighter, more prosperous future."

The Special Report collects and analyzes the results of AmCham South China's ten-year-running study of companies' experiences in South China. This year, data showed that more than 73 percent of participating companies were primarily engaged in producing goods or services for the domestic Chinese market, rather than manufacturing in China for export to other countries. As late as 2006, a strong majority reported being engaged primarily in manufacturing for export.

This year, 84 percent of study participants ranked the business environment in South China as "Good/acceptable", "Very good" or "Outstanding"; meanwhile, roughly 50 percent of participants felt the business environment had improved over the past 12 months against 22 percent who felt it had worsened.

81 percent of study participants reported that they had taken advantage of the labor market to hire new employees, leading the business organization to estimate that its members had hired nearly 774,000 new employees over the course of 2013.

Reinvestment budgets continued their recovery from a multi-year slump which coincided with the worldwide economic slowdown, with study participants reporting 1-year reinvestment budgets 30 percent higher than those for 2013. Based on that growth, AmCham South China estimates that its more than 2,000 members have allocated in excess of $13 billion to expand their operations in China.

That growth can be explained by high levels of profitability: 92 percent of participants reported either being profitable already or expecting to reach profitability within 2 years. Despite strong performance, however, 43 percent indicated that they were not meeting budget expectations for profitability. This, says Mr. Seyedin, can be primarily attributed to growing competition from increasingly-sophisticated domestic enterprises.

The lists of participants' major concerns at the present and over the coming three years continue to be topped by "Regulatory Issues (Chinese Government)," a result which is perhaps unsurprising given that the local regulatory environment for companies is the one most likely to have an impact on their operations. Other concerns include local competition, rising labor costs, difficulty finding both skilled and generalist employees as well as foreign competition.

Another question, intended to track perceptions of external risk, saw companies tagging "Increasing inflation" and "Increasing minimum wage standards" as the two biggest sources of concern for future operations. Equal numbers of participating companies felt appreciation of the RMB's value would have positive and negative effects on future operations.

Asked about a hypothetical Free Trade Zone in South China, roughly 42 percent of participants indicated interest in expanding into such a zone while 30 percent showed no interest or ambivalence. 28 percent of participants reported that they were uncertain about potential positive or negative effects of such a move.

Meanwhile, 54 percent of participants indicated that a more freely-convertible yuan would have a positive effect on their China operations, a slightly larger majority than those indicating that a more freely-convertible yuan would have a positive effect on their company's global operations. In both scenarios roughly 16 percent of participants were unsure about what effect such a change might have, and in both cases approximately 30 percent reported that easier convertibility would actually have a negative effect on their operations in China and internationally.

The White Paper, now in its sixth edition, argues in favor of a new wave of economic reform aimed at stimulating the private sector and unlocking the innovative potential of China's as-yet small entrepreneurial community.

Both documents may be downloaded free of charge from the chamber's website at www.amcham-southchina.org.

About The American Chamber of Commerce in South China

The American Chamber of Commerce in South China (AmCham South China) is a non-partisan, non-profit organization dedicated to facilitating bilateral trade between the United States and the People's Republic of China. Certified in 1995 by the U.S. Chamber of Commerce in Washington D.C., AmCham South China represents more than 2,000 corporate and individual members, is governed by a fully-independent Board of Governors elected from its membership, and provides dynamic, on-the-ground support for American and International companies doing business in South China. In 2013, AmCham South China hosted nearly 10,000 business executives and government leaders from around the world at its briefings, seminars, committee meetings and social gatherings. The American Chamber of Commerce in South China is a fully-independent organization accredited by the U.S. Chamber of Commerce in Washington, D.C. All AmChams in China are independently governed and represent member companies in their respective regions.

SOURCE AmCham South China

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...