Page 9 - SCBJ-201603
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March 2016

93 percent of participants reported either being profitable When asked about the influence of the Bilateral Investment
already or expecting to reach profitability within 2 years; of Treaty (BIT) between U.S. and China on company’s investment
those already profitable companies, however, nearly 43 percent budget, nearly 30 percent of the participants expected
reported that they were not meeting budget expectations for their investment budgets to increase, with 8% of them each
profitability. This discrepancy, says Mr. Seyedin, is likely due increasing their budgets by US$250 million or more, which
to budget expectations not having been adjusted for China’s indicates that they see the BIT as an opportunity for their
economic transition. business development.
In terms of planning and risk management, the biggest
Among all the participating companies, 38 percent reported perceived challenge to the operations of study participants for
interest in investing in the newly announced Free Trade Zones the first time ever changed to “Local competition”, signaling
located in South China, and vast majority of them are more an alarming concern for equal treatment. Trailing behind in
likely to choose Free Trade Zones in Guangdong, especially second, third, fourth and fifth places are “Regulatory issues
the China (Guangdong) Pilot Free Trade Zone Nansha Area of (Chinese government)”, “Rising labor costs” “Lack of qualifiable
Guangzhou. general personnel” and “Foreign competition”. This indicates
that China’s overall regulatory system is improving.
One new area covered in this year’s study is about the influence
of “One Belt-One Road” Initiative on company revenue. Both documents may be downloaded free of charge from the
37.5 percent of the participating companies expected their chamber’s website at www.amcham-southchina.org.

Release Press Conference attended by over 50 mainstream media at home and abroad

revenue to either increase somewhat or greatly. Among those
companies, over half of them expected the increase to come
from “Asia Pacific” or “Other Asian Countries”, followed by
“United States” and “Europe”.

Another area covered is about the new “Cross-Boarder
E-commerce” Initiative. Among companies which have been or
plan on being involved in the said initiative, 61 percent reported
most of their foreign imports to China come from “United
States”. Also top on the rank are “Europe” and “Other Asian
Countries”. We also observe that 85 percent of the participating
companies haven’t been involved, not planning on being
involved or uncertain about the new initiative. This indicates
great potential in this industry.

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