American business leaders are optimistic about the Chinese market, emphasising its critical role for US companies seeking global competitiveness, MacauBusiness reports.
Michael Hart, president of the American Chamber of Commerce (AmCham) in China, told Xinhua in a recent interview:
Companies continue to tell us that China is important for multinational companies who want to be globally competitive.
Hart believes US businesses in China are increasingly optimistic about the Chinese business environment and bilateral relations, thanks to the growing economy and frequent visits by senior US officials and CEOs to China.
AmCham China’s annual China Business Climate Survey found that half of the 343 members surveyed named China as their first choice or one of the top three investment destinations in the world, up 5% from last year.
China is “an important source of talent and innovation that helps US companies improve their global competitiveness,” the study said late last year.
The report also found that despite continuing challenges, most participants are keeping their manufacturing or sourcing operations in China, and expatriates have become more willing to relocate to China over the past year.
Noting the 24 measures to support foreign investment adopted by China’s State Council last August, Hart said companies like the sound of them but want to know “what the actual actions associated with these policies are.”
On the relationship between the US and China, Hart said he was glad to see that “both governments are trending upward right now,” which means companies will be “a little more encouraged.”
The companies surveyed also reported improved financials for 2023, particularly in the consumer and services sectors, as well as improved forecasts.
In November 2023, fast food giant McDonald’s announced its decision to increase the share of its China business from 20 per cent to 48 per cent. “This emphasises McDonald’s confidence in the development and business conditions in the Chinese market,” said Phyllis Cheung, CEO of McDonald’s China. Owen Messick, president of doTERRA China, a US essential oil company, told Xinhua:
I don’t think that there’s any company that’s big and truly international would doubt that in the long term, they need to be here in China. They need to have a significant presence. And they need to continue to develop this market because it’s so big and growing that it really can’t be ignored at all.
Hart also added:
China’s part of a global supply chain, and has years and years of successful investments, industries and buildup. And that’s why companies are still here.
