US Companies Feel Positive about China

Today I attended a lunch organized by AmCham Shanghai to present their 2010-2011 China Business Report. It was a really interesting presentation and the survey brings, as in previous occasions, good insights on how US companies are performing and how they see their future ahead in China (I would imagine we could extrapolate a lot of those insights to other countries’ realities)

These are a few highlights of the survey results: (more to come)
-companies are not just doing well… they seem to be doing great “reporting all-time performance highs”
– 87% of the companies reported “revenue growth” (Vs.  47% in 2009)
– 79% reported being “very profitable” or “profitable” (Vs. 65 % in 2009)
– 61% reported market share gains (Vs. 40% in 2009)

And they feel the future ahead is equally bright- with 71% of the companies expecting increase revenue growths by more than 10% in 2011.

Having said that, China is still a challenging market, with a wide range of issues like HHRR constraints, lack of transparency, protectionism, IP risks… just to mention a few. But today I will finish the post on a positive note and will write about some of those challenges in future posts.

2 comments

  1. Did they provide details and growth versus 2008? Global crisis affected mainly (in China) during 2009 so, measuring 2010 results versus 2009 does not seem to be very realistic…and honest!.

    China market is growing but are really International Companies growing together with the market? or this is exclusive for Chinese Companies?

  2. 2008 and 2009 results had definitely been influenced by global crisis. They also offered data for 2008: revenue growth 77%, very profitable/profitable 70% and market share gain 52%.

    More than 80% of the companies surveyed claim to be producing/sourcing “in China for China”…which gives further clues on how important this market is becoming.

    To your question about the foreign companies growth and the current role of Chinese companies:
    -Most of the companies in the survey are forecasting growths and further investment from next year, BUT they also say the market is becoming a lot more competitive, and that competition is not only coming from foreign companies in those same sectors but from local companies, both private and state owned enterprises.71,7% of the companies felt that competition from PRC firms had increased (Vs. 56,4% the previous year).