May 27 – AmCham South China released their annual report business conditions in the Greater Pearl River Delta region last month, stating that business in South China remains excellent (click on picture to download report).
The reports, conducted by AmCham South China in partnership with Hewitt Associates and Dezan Shira & Associates, collected the experiences and insights of 419 international and local companies in Guangdong, Guangxi, Fujian and Hainan according to the chamber’s press release.
“I believe that the most important thing about this report,” said AmCham South China President Harley Seyedin, “is that it is only the broadcast medium for a message coming directly from the international business community.”
Nine out of ten participating companies indicated that they were already profitable, or would be within two years or less, and vast amounts of these profits are reported as being reinvested in China, with approximately 23 percent of companies indicating that they plan to invest in excess of US$50 million in China over the coming three years, and half of that number planning to invest in a US$25 million or more—each—in that same time frame.
Among the more than 400 participants in the study, the overall business environment in South China received an 87 percent approval rating, with more than 90 percent reporting that economic reforms in 2007 had at least some positive effect on their business operations.
Dezan Shira & Associates also provided an in-depth economic regional overview for the report, determining that the Pearl River Delta will remain China’s “beating economic heart” for quite some time. The practice, with three regional offices in South China has long been a part of the annual survey.
“Guangdong has China’s highest GDP, accounts for more than one-third of China’s foreign trade, and is the country’s most popular destination for foreign direct investment. The province contains nearly a quarter of China’s foreign-invested enterprises, which generate more than half of Guangdong’s exports and total industrial output.”
“This is a business environment,” said Seyedin, “that is continually fine-tuning and realigning itself to take advantage of new opportunities and reach goals that will benefit not only the many peoples of South China, but also its trading partners the world over.”
The “2008 Special Report on the State of Business in South China,” compiled by the American Chamber of Commerce in South China with the support of Hewitt Associates and Dezan Shira & Associates is an annual publication intended to provide an overview of the economy of Southern China, its progress and development, and the successes and challenges of the individual companies operating in it. The report, distributed to members of the American Chamber of Commerce in South China is available for complimentary download at the AmCham South China’s website.