The number one concern among American multinationals doing business in China is increased competition from the Chinese. Ninety-five percent of companies that participated in a recent survey of U.S. multinationals in China said most of their competitors are local, of which 68% are state-owned. According to the annual member survey by the U.S. China Business Council, the biggest restraints on profitability is domestic competition followed by government policies and regulation.
USCBC in the News
The U.S.-China Business Council’s survey released Wednesday showed most companies are enjoying better profitability and expecting higher revenues for their China operations as the economy revives. But restricted market access and uncertainty over Beijing’s policies toward foreign companies made them less optimistic about the business climate than in recent years.