China Remains Important Market for American Companies Despite Slowdown

China’s growth slowdown is impacting American company financials and market sentiment, according to the US-China Business Council’s (USCBC) annual Member Survey report.

The report show that nearly 20 percent of respondents expect revenue to decline this year, though two-thirds anticipate continued growth.

Despite slowing revenue growth, 90 percent of companies surveyed remain profitable, but at reduced rates that reflect increasing competition, rising costs, and regulatory impediments.

The report also finds that uncertainty about China’s economic reform policies is undermining business confidence. Even so, China remains a priority market for American companies.

“Ninety percent of companies say China growth prospects are the same or better than other emerging markets,” said ,” said USCBC president John Frisbie. “To the American business community, there’s no ignoring the second largest economy in the world.”

Of the Top 10 challenges, six would be improved by a high-standard US-China Bilateral Investment Treaty.

“I anticipate that the ongoing negotiations on the bilateral investment treaty will be high on the agenda for President Obama’s meeting with President Xi Jinping in early September in China,” said Frisbie.

 

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