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2005-09-05 | All chapters

Companies' Confidence in China Grows
Zhao Shijun, China Daily, 5th September 2005

A recent survey conducted by the European Union Chamber of Commerce in China indicates that the chamber members are generally confident about the business environment in China.

About one-fourth of the membership enterprises, mostly headquartered in Beijing and Shanghai, answered the survey questionnaire.

About 58 per cent of the chamber members have been operating in China for more than 10 years and 76 per cent for more than five years.

The survey shows that the number of companies that have presence in China for less than two years has increased substantially, marking the enterprises' growing interests in China.

Many of the surveyed companies said they are optimistic about their business prospects in China.

Sixty-one per cent of the companies predicted they will make profits in China this year.

Judging from their substantial growth in the past years, those companies that have more than 10 years of operations in China are especially optimistic about their growth prospects in the country.

Last year, those companies that have been in China for five-10 years reported an average revenue growth of 42 per cent. Those with more than 10 years' presence realized a growth of 35 per cent.

Even among those companies failing to make a profit to date, 68 per cent predict they can earn profit within the next three years.

The survey said the member companies generally acknowledge the positive influence of China's World Trade Organization (WTO) entry on the country's business environment.

More than half of the surveyed enterprises agreed that China will actively implement their commitments to the WTO, however they pointed out that there are some fields which need to be improved.

These concerns include government transparency, intellectual property rights protection and registration procedures.