{"id":20838,"date":"2023-08-02T01:00:00","date_gmt":"2023-08-02T01:00:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/4171879_CN71879_0"},"modified":"2023-08-02T01:00:00","modified_gmt":"2023-08-02T01:00:00","slug":"amcham-south-china-study-business-confidence-in-china-rising-increases-in-investment-plans-observed","status":"publish","type":"post","link":"https:\/\/transmediavictoria.net.au\/?p=20838","title":{"rendered":"AmCham South China Study – Business Confidence in China Rising, Increases in Investment Plans Observed"},"content":{"rendered":"

GUANGZHOU, China<\/span>, Aug. 2, 2023 \/PRNewswire\/ — The American Chamber of Commerce in South China<\/span> (AmCham South China)  released its 2023 Mid-Year Report on Impact of COVID Policy Change<\/i>. The study shows slow but steady improvement in business sentiment, investments, and activities in the first half of 2023.<\/span><\/p>\n

Dr. Harley Seyedin<\/span>, President of AmCham South China, winner of 2017 Oslo Business for Peace Award (together with Elon Musk<\/span>, Durreen Shahnaz and Murad Al-Katib<\/span>), which is awarded by an Award Committee of Nobel Laureates in Peace and Economics, said, “Our study shows China<\/span> is on the road to slow but steady recovery and, as in the past, will be a major contributor to the global economic growth.”<\/p>\n

The Mid-Year study offers a comparison of data with AmCham South China’s annual study, the 2023 Special<\/i> Report on the State of Business in South China<\/span><\/i>, released earlier this year on February 27<\/span>. The gathering of data for the annual study had been completed by December 15, 2022<\/span>, shortly before China<\/span> ended its “Zero-COVID” policy. Therefore, that data had not been impacted by immediate emotional reaction to the policy change. As a result, this Mid-Year study offered us a unique opportunity to assess decisions made by businesses impacting various aspects including revenues, business operations, reinvestment plans, and business environment within the six months after the change in the Zero–<\/span>COVID<\/span> Policy. Both publications are available at http:\/\/www.amcham-southchina.com\/amcham\/static\/publications\/publications.jsp<\/a><\/p>\n

The 2023 Mid-Year Report paints a hopeful picture of business operation in China<\/span>, with 92% of the companies studied reporting full or partial recovery. Nearly half of companies experience significant or slight increases in revenue in the first quarter of 2023, including 64% of Chinese companies and 38% of American companies. 45% of American companies experience 1% to 15% revenue losses caused by cancellation and relocation of orders in the second half of 2022 due to expectations that the Zero–<\/span>COVID<\/span> policy would continue into 2023. American losses were higher than that of Chinese and other companies.<\/p>\n

After the abandonment of “Zero-COVID<\/span>” policy, China’s<\/span> economy has been on track to recovery as impacts from the pandemic has continued to gradually wane and consumer market continues to slowly bounce back. China’s<\/span> second-quarter gross domestic product released on Monday July 17, 2023<\/span>, by China National Bureau of Statistics (NBS) showed growth at 6.3%. GDP grew at a 0.8% pace from the first quarter, slower than the 2.2% quarter-on-quarter pace reported in the first quarter. NBS statistics show a slower than expected but steady growth, which is also reflected in the AmCham South China’s 2023 Mid-Year Study.<\/p>\n

60% of companies remain positive towards the business outlook in China<\/span>, including 57% of American companies. U.S. businesses show stronger confidence in the Chinese market, up by 4% compared with the sentiment prior to China’s<\/span> reopening. While 75% of American companies expect no change in their budgeted reinvestment plans, 25% plan to increase their reinvests in various size projects. This includes a 1% increase in reinvestment plans for projects involving US$250 million<\/span> or more. This proportion was zero at the end of 2022 before China<\/span> ended its “Zero-COVID” policy.<\/p>\n

Key Takeaways of the 2023 Mid-Year Report on Impact of COVID Policy Change<\/i>:<\/b><\/p>\n