GUANGZHOU, China, Sept. 22, 2020 /PRNewswire/ -- In order to determine the state of business in South China in the first half of 2020 and to assess the impact of many challenges facing business going forward, the American Chamber of Commerce in South China conducted a comprehensive study involving 172 companies from August 28th to September 8th. The study includes companies from Mainland China, Hong Kong, Taiwan, Germany, Belgium, Switzerland, Spain, UK, Serbia, France, Nepal, Japan and the United States. The majority are U.S.-invested enterprises (50%), followed by of China-invested enterprises (33%) and enterprises originating from other countries and regions (17%).
The complete study, the 2020 Mid-Year Special Report on the State of Business in South China, released today can be downloaded here:
Main takeaways of the study are:
100% of the companies studied are currently operational, while 22% report that they had to temporarily shut down part of their operation. No company has had to permanently shut down.
Over 78% no longer face difficulties with the supply chain, an increase of 46% since March 12, 2020 when we released our Special Report on the Impact of COVID-19 on the Supply Chain.
Despite increasing political tensions between China and US and challenges posed by COVID-19, 90% of the studied companies, regardless of origin, hold a positive outlook for the second half of 2020. These companies display a strong will to continue to grow and expand amid the continued current difficulties.
48% of companies expect their year-on-year revenue to increase in the second half of 2020. Meanwhile, nearly 18% of participating companies expect no change in revenue.
71% of the companies studied maintained or increased employee headcounts, while 29% saw a decrease.
For the second half of 2020 45% of the companies expect to maintain reinvestment at previously budgeted levels, while 26% expect to increase their reinvestment (8% by up to 5%, 9% by between 5%-10%, and 9% by more than 10%). At the same time 29% expect to decrease their planned reinvestments.
While the study shows surprising similarities in responses from companies of various origin, in this report we have decided to show the combined responses, as well as, by region (U.S., China, and Other) and in many cases also by industry.
AmCham South China President, Dr. Harley Seyedin said "We look forward to a future without COVID-19 and one of good health, growth and prosperity. After all, we all have a common goal of giving our children a better life than we have had. Working together towards that goal will guarantee peace and prosperity and a better future for everyone in the world."
About the American Chamber of Commerce in South China
The American Chamber of Commerce in South China (AmCham South China) is a non-partisan, non-profit organization dedicated to facilitating bilateral trade between the United States and the People's Republic of China. Certified in 1995 by the US Chamber of Commerce in Washington DC, AmCham South China represents more than 2,300 corporate and individual members, is governed by a fully-independent Board of Governors elected from its membership, and provides dynamic, on-the-ground support for American and International companies doing business in South China. In 2019, AmCham South China hosted more than 10,000 business executives and government leaders from around the world at its briefings, seminars, committee meetings and social gatherings. The American Chamber of Commerce in South China is a fully-independent organization accredited by the US Chamber of Commerce in Washington, D.C. All AmChams in China are independently governed and represent member companies in their respective regions.
SOURCE The American Chamber of Commerce in South China