Page 10 - 2024 Special Report on the State of Business in South China
P. 10
late 2021. China's economy rebounded in 2023 ï¼?1000ä¸????»¥ä¸?????3%???访ä?ä¸????????è¶?
as consumer spending fueled the post-COVID è¿?2.5亿ç????项ç?ï¼??表æ????ä¼??对æ??¥å????
reopening in conjunction with accommodative èµ???¶ç»´??°¨????º¦??????ç®?????é¢??è¿?2.5äº?
government policy. According to an International ç¾?????èµ??ä¸??ä¾?????4%??????????????¡æ?
Monetary Fund, China's economic growth was å±?????访ä?ä¸???????¸»è¦???????ä¸?????ï¼??
in line with the country's roughly 5% goal in ä»???¨å?注å??°å?人æ??¹å????å°??强ä?ä¸??äº??ï¼?
2023 but is expected to lose steam in 2024 and � � ?? � � ?? � ?? ?? � � ?? ?? � � ?? ?? � ?? ?? ????
beyond, dropping as low as 4.6% in 2028. The ä½????ï¼??访ä?ä¸??为å?ä¸???½è?å¾??é«????????
country is expected to face headwinds from ????80%???访ä?ä¸?¡¨ç¤?2023å¹´å????»ä?????????
weak productivity and population aging. That 为æ??¼æ?è¾?¤§æ£å?¼ï?该æ?ä¾??é«?????ä¸?¹´?´ï?2020
being said, China?? economy has the advantages å¹´è?2022å¹´ï????????????¹³???¼ï?74%ï¼???????
of a vast market of 1.4 billion people and an 访ä?ä¸??51%ï¼??为ç?è¾?????»ä???????????¶å???
advanced industrial base. ?»ä??????????ä½³ã??????表示ï¼??访ä?ä¸???¥ä?
?°ä?å¹´å????æ¶?????é¢??é¢???¾è?ä¸??40.15%ï¼?
A study by Enright, Scott and Associates, ???èµ??é¢??è¾?109.5亿ç?????¨ä??©å¤§???å¾??å¤?
shows foreign invested enterprises account for ????ºä»½é¢???
33% of China?? GDP and 27% of its employment,
while US companies contribute to China?? GDP ä»?¹´???????½å?ä¼??å¸????????ºç?æµ???µç?
each year more than 180 times the value of the ????????ç¬????¹´ï¼???¥å?对å????è¡???¨é????
usual measure of US FDI inflow. This explains ?????©¶ä¸?????并就????°å????å±???¿æ??ºä?å®?
the reason foreign enterprises, however è´? ?? è§? è§? ??? å¹´ï??? ?? 1 8 3 å®? ä¼? ä¸? ?? ä¸? äº? è¯? ?? ?? ?? ??
cautiously, continue their interest in the Chinese ?·è??¥ã???ä¸?次ï???»¬???ç»?????份信??¸°å¯??ä¸?
market in spite of continued difficulties facing é¢?????å°???©ä?读è????¨é??°ä?解å??¨ä¸?½ç????
all companies due to impact of three years of ?? ?? ??? � � � ?? ?? ?? ?? ?? � ?? ?? � ?? ?? ?? ?? ?? �
Covid-19, interruptions in the supply chain, 2024å¹?1??????æ±????
shipping container shortages, exorbitant cost
of international travel and logistics, and anemic
world demand.
According to the 2024 Special Report on
the State of Business in South China, of 76% of
companies studied with plans for reinvestment
in China in 2024, 77% plan to reinvest with a
low quota (less than US$10 million). Only 3%
will reinvest in projects involving US$250 million
or more, indicating continued caution towards
future investment in China. The proportion
of American companies budgeting to reinvest
US$250 million or more has increased to 4%.
Sales, marketing and business development
remains the primary areas of reinvestment for
our member companies. But at the same time,
they are also paying attention to innovation and
talent cultivation. This will strengthen corporate
competitiveness and provide momentum for
China?? transition from high-speed growth to
high-quality development. Generally speaking,
companies studied believe that they enjoy a high
rate of return on investment (ROI) in China. 80%
of the participating companies report that their
overall ROI in China is positive or very positive, a
proportion far higher than the average positive
ROI (74%) during three years of the pandemic
(2020 to 2022). Compared with their overall return
on global investment, over half of the companies
studied (51%) believe that their overall ROI in
10
as consumer spending fueled the post-COVID è¿?2.5亿ç????项ç?ï¼??表æ????ä¼??对æ??¥å????
reopening in conjunction with accommodative èµ???¶ç»´??°¨????º¦??????ç®?????é¢??è¿?2.5äº?
government policy. According to an International ç¾?????èµ??ä¸??ä¾?????4%??????????????¡æ?
Monetary Fund, China's economic growth was å±?????访ä?ä¸???????¸»è¦???????ä¸?????ï¼??
in line with the country's roughly 5% goal in ä»???¨å?注å??°å?人æ??¹å????å°??强ä?ä¸??äº??ï¼?
2023 but is expected to lose steam in 2024 and � � ?? � � ?? � ?? ?? � � ?? ?? � � ?? ?? � ?? ?? ????
beyond, dropping as low as 4.6% in 2028. The ä½????ï¼??访ä?ä¸??为å?ä¸???½è?å¾??é«????????
country is expected to face headwinds from ????80%???访ä?ä¸?¡¨ç¤?2023å¹´å????»ä?????????
weak productivity and population aging. That 为æ??¼æ?è¾?¤§æ£å?¼ï?该æ?ä¾??é«?????ä¸?¹´?´ï?2020
being said, China?? economy has the advantages å¹´è?2022å¹´ï????????????¹³???¼ï?74%ï¼???????
of a vast market of 1.4 billion people and an 访ä?ä¸??51%ï¼??为ç?è¾?????»ä???????????¶å???
advanced industrial base. ?»ä??????????ä½³ã??????表示ï¼??访ä?ä¸???¥ä?
?°ä?å¹´å????æ¶?????é¢??é¢???¾è?ä¸??40.15%ï¼?
A study by Enright, Scott and Associates, ???èµ??é¢??è¾?109.5亿ç?????¨ä??©å¤§???å¾??å¤?
shows foreign invested enterprises account for ????ºä»½é¢???
33% of China?? GDP and 27% of its employment,
while US companies contribute to China?? GDP ä»?¹´???????½å?ä¼??å¸????????ºç?æµ???µç?
each year more than 180 times the value of the ????????ç¬????¹´ï¼???¥å?对å????è¡???¨é????
usual measure of US FDI inflow. This explains ?????©¶ä¸?????并就????°å????å±???¿æ??ºä?å®?
the reason foreign enterprises, however è´? ?? è§? è§? ??? å¹´ï??? ?? 1 8 3 å®? ä¼? ä¸? ?? ä¸? äº? è¯? ?? ?? ?? ??
cautiously, continue their interest in the Chinese ?·è??¥ã???ä¸?次ï???»¬???ç»?????份信??¸°å¯??ä¸?
market in spite of continued difficulties facing é¢?????å°???©ä?读è????¨é??°ä?解å??¨ä¸?½ç????
all companies due to impact of three years of ?? ?? ??? � � � ?? ?? ?? ?? ?? � ?? ?? � ?? ?? ?? ?? ?? �
Covid-19, interruptions in the supply chain, 2024å¹?1??????æ±????
shipping container shortages, exorbitant cost
of international travel and logistics, and anemic
world demand.
According to the 2024 Special Report on
the State of Business in South China, of 76% of
companies studied with plans for reinvestment
in China in 2024, 77% plan to reinvest with a
low quota (less than US$10 million). Only 3%
will reinvest in projects involving US$250 million
or more, indicating continued caution towards
future investment in China. The proportion
of American companies budgeting to reinvest
US$250 million or more has increased to 4%.
Sales, marketing and business development
remains the primary areas of reinvestment for
our member companies. But at the same time,
they are also paying attention to innovation and
talent cultivation. This will strengthen corporate
competitiveness and provide momentum for
China?? transition from high-speed growth to
high-quality development. Generally speaking,
companies studied believe that they enjoy a high
rate of return on investment (ROI) in China. 80%
of the participating companies report that their
overall ROI in China is positive or very positive, a
proportion far higher than the average positive
ROI (74%) during three years of the pandemic
(2020 to 2022). Compared with their overall return
on global investment, over half of the companies
studied (51%) believe that their overall ROI in
10
