Macroeconomic issues were the No. 2 worry in the annual survey. Some 68% in the China General Chamber of Commerce respondents said they were concerned about inflation and economic uncertainty. Labor expenses were cited by 90% of companies as a rising cost; 38% said the increase in U.S. labor costs was substantial. Asked how they responded to the rise in costs, 49% increased the price of their goods and services; 23% lowered their earnings.
Other worries cited in the report were “unstable U.S. policies toward foreign investments” , difficulty recruiting and maintaining talent , high compliance costs in the U.S. , and barriers to employment-based visas and immigration programs . Further down the list were difficulties in obtaining approval of license or permits , cultural differences between the two countries , low acceptance of Chinese and Asian brands in the U.S. , taxation and exchange rate risk in the U.S. .
Amid those problems, revenue at Chinese companies in the U.S. was weaker than in the previous year, the chamber found. The report found that the percentage of Chinese companies whose revenue fell in 2022 rose to 37% from 26% a year earlier. The share of companies whose revenue increased from a year earlier declined to 42% from 54% a year earlier, the chamber found.... [+]And yet on the other hand, 51% of the respondents reported an increase in pretax profit margins, up from 47% a year ago.
Against that backdrop, some 93% of Chinese businesses said they expected to either increase their investment in the U.S. or leave it unchanged from 2022. “The primary motivations for Chinese companies to establish a U.S. presence two-fold: the vast size of the market, and its leading business mindset,” the report said. One in four companies in the past year exceeded their expectations in the U.S., approximately half met them, and a quarter fell below, the chamber said.
Chamber members include the Bank of China, Fosun International, BYD, Sany America, Broad U.S.A., Hongdou America, Tencent Cloud, Wanxiang Group and Fuyao Group.
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Source: CNBC - 🏆 12. / 72 Read more »