5 February 2011 | Adam Leach
US
businesses in China enjoyed increased revenues and market share in 2010 despite
remaining cautious about regulation which favours Chinese firms.
A survey by
the American Chamber Of Commerce in Shanghai (AmCham
Shanghai) has found that 87 per cent of companies had experienced growth in
revenues during in 2010, compared to 47 per cent the year before. The number of
firms that increased their market share was up to 61 per cent in 2010, from 40
per cent the year before.
Of the 346
firms that took part in the research, more than half (55 per cent) said
producing or sourcing goods and services in China for the Chinese market is a
primary aim.
The result
is in stark contrast to a similar study published
a year ago by the American Chamber of Commerce in the People’s Republic of
China (AmCham-China) which found more than half of US firms doing business in the country
expected to lose trade as a result of the nation’s proposed “protectionist”
procurement rule.
Despite the
success, US firms do, however, continue to see China’s “problematic regulatory”
climate as a hurdle to business because it puts domestic companies at a
distinct advantage over foreign companies.
Finding the
right staff and coping with an influx of new competitors, foreign and domestic,
were also highlighted as key challenges in the 2010–2011 China Business Report.
President of
AmCham Shanghai, Brenda Foster said: “This year’s survey results indicate that
US companies in China have come to expect challenges in the China market, have
weighed them against the opportunities and have found a way to succeed despite
them.
“Nonetheless,
it is essential that the US continues to aggressively engage China to address
key business challenges that hinder market access today and could impact future
investment.”
With more
attention being paid to business interests in China, 20 per cent of US
companies state that growing their interests in the country is their top
priority.
Some 72 per
cent said they are designing unique products or services to sell in China.
