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BEIJING — American companies operating in southern China’s manufacturing areas say they face tougher local competition, ongoing regulatory concerns and rising labor costs, but most said they are profitable and intend to reinvest in China, according to a survey.
A white paper on business conditions issued by the American Chamber of Commerce in South China found that most of the 246 companies that responded to its survey believe China is making modest but steady progress on its economic-reform agenda, even as they urged Beijing to pick up the pace.
“It is clear that China needs to put growth on a sustainable track and that there needs to be renewed efforts for economic restructuring,” said Harley Seyedin, president of the Guangzhou-based chamber, which has 2,300 members.
A majority of respondents said business conditions either remained steady or improved over the past 12 months, matching year-earlier results. And 83% said they considered the overall business environment in South China to be “good,” “very good” or “outstanding,” the survey said, down slightly from an 85.3% level in a survey a year earlier.
The generally upbeat tone contrasted with surveys released recently by U.S. and European business groups based in Beijing. Seyedin said the difference in the responses appears to reflect better operating conditions in the south than elsewhere in China.
