China’s Vice Premier Wang Yang recently sent a message of reassurance to a select audience of executives from nearly 20 multinational companies at an investment event in the southern city of Xiamen.
China Market Intelligence
On September 25, China’s State Council released a comprehensive plan outlining regional economic cooperation in key areas like environmental production, logistics, and urbanization in an area known as the Yangtze River Economic Belt.
Your customers have probably heard that US companies do business in China so they can cut costs and outsource American jobs. It is a phrase that’s been uttered many times—so much so that many Americans think it’s true. But the simple fact is that it’s not.
Why are US companies in China in the first place?
Like energy, human resources, and financial capital in previous generations, data has become a key input for many companies hoping to improve their products and services and better understand their customers.
American companies doing business in China are experiencing continued pressure on profit margins, driven by increasing local competition and rising costs, according to the US-China Business Council’s (USCBC) 2014 member survey. The survey, which will be released next week, shows that uncertainty about China’s policy direction is also coloring perceptions about the business environment.
New amendments to China’s Budget Law now allow local governments to issue debt in domestic bond markets. Debt issuance is a central aspect of the revamped law, which was passed at the end of August and includes 22 news articles and more than 82 changes.
From recent investigations in the auto parts industry to “dawn raids” at foreign IT firms, China’s rising level of antimonopoly enforcement activity has raised concerns for many US companies doing business in China.
China’s top leadership plans to tackle executive pay at state firms as it focuses on implementing its broader economic and political reform agenda.
US governors are heading to China in increasing numbers to seek potential investors for public and private projects. Since 2009, US governors have led 58 trade missions to China, helping to usher in more than $34 billion in direct investment over the past five years.