More U.S. Companies Think Of Moving Capacity From China To Other Locations, AmCham China Report Reveals

In 2015, only 64 percent of U.S. companies doing business in China described their operations as profitable, the lowest level in the last five years, according to the American Chamber of Commerce in the People’s Republic of China. Results of the group’s 2016 China Business Climate Survey Report revealed almost half of respondents predict China’s overall GDP growth in 2016 will fall below 6.25 percent. Member companies cited economic challenges and the regulatory environment as key factors limiting their ability to invest and grow in the country. Human resources issues, including labor costs and shortage of qualified workers, are also among the top 5 problems cited by member companies. Although China remains a top 3 investment priority for six out of 10 member companies, about one-third of respondents said they are not planning to increase their investments in the country in 2016. By the end of 2015, 25 percent of respondents have either already moved or are planning to move operations outside of China.