Foreign firms ‘optimistic’ about prospects in China

January 21, 2016 - 17:29 BJT (10:29 GMT) Economic and Commercial Section in Gothenburg

Most foreign companies remain optimistic about growing in China, according to a new survy 
from the American Chamber of Commerce. Its 2016 Business Climate Survey polled almost
500 AmCham China member companies, with 60 percent regarding the country as one of th
eir top three investment destinations, and a quarter their priority market.

“Relative to other development markets, China is still well positioned,” said AmCham China
Chairman James Zimmerman. “China remains a top investment priority for more than half of
companies as they look to innovation for growth.”

China’s economic slowdown has been ongoing for two years, with both factory output and in
vestment growth failing to fulfill forecasts.

AmCham said its member companies believe a stronger legal framework was necessary to
facilitate future business growth.

However, nearly 80 percent of those polled expected the US-China Bilateral Investment
Treaty to increase transparency, predictability and fairness of the regulatory environment.

The chamber’s multinational members are as confident in China’s investment and economic 
outlook as its American members, showing no trace of keeping back their enthusiasm to inve
st and set up new business.

According to the Ministry of Commerce, optimism in China’s economic outlook and

investment by multinationals helped the country attract 781.4 billion yuan ($126.3 billion) in
non-financial foreign direct investment in 2015, up 6.4 percent from 2014.

Tang Wenhong, director general of the ministry’s department of foreign investment

administration, has said the world’s top 500 companies have continued to invest and expand
their business in the country, reflecting a commitment to China’s economic outlook.

US Chipmaker Qualcomm Inc recently pledged a major investment in Guizhou province, as 
part of a 1.85-billion-yuan joint venture to produce server chips for the domestic market.