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Foreign Companies See China as Crucial Locomotive for Global Economic Growth in 2023, AmCham South China Survey Shows

BusinessForeign Companies See China as Crucial Locomotive for Global Economic Growth in 2023, AmCham South China Survey Shows

According to a recent survey, China remains an attractive destination for foreign investors, with over 90 percent of companies selecting it as one of their most important markets. Harley Seyedin, President of the American Chamber of Commerce in South China, announced that over half of the participating companies gained over 30 percent of their revenues from China, indicating a year-on-year increase of 4 percent. The survey studied and surveyed 210 companies from around the world.

Seyedin also reported that despite a moderate decrease in the proportion of companies reporting an increased headcount in 2022, most companies remain positive about their employment expansion plans, with 44 percent of them planning to augment hiring in 2023. Companies’ profitability showed signs of improvement last year, with 88 percent of those surveyed reporting higher profits in China, an increase of 6 percent. Up to 90 percent of the U.S. companies achieved profitability in China, and 54 percent of those met their budget expectation.

Seyedin noted that the investment enthusiasm of companies is on an upward trajectory, with four-fifths of companies reinvesting in China in 2022. In addition, 74 percent of participating companies chose not to shift their investments out of China last year, and no companies expressed an intent to leave China entirely.

Guangzhou has been the top preferred investment destination in China for six consecutive years, followed by Shenzhen, Shanghai, and Beijing. Seyedin acknowledged that while COVID-19 had a severe impact on China’s economy, the setback was temporary. He stated that with the optimization of COVID-19 policies and measures and further opening-up, China is now headed towards recovery and will unleash substantial economic vitality greater and sooner than expected. Seyedin believes that China’s economy will be a crucial locomotive in promoting global economic growth in 2023, based on the survey and study results released.

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