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More US companies eye China's domestic market: survey

(Xinhua)
Updated: 2011-03-02 11:09

GUANGZHOU - More US businesses seek expansion in China to cash in on the expanding domestic market, rather than seeing China as only a processing and export hub, a survey showed Tuesday.

About three-fourths of over 400 member companies surveyed by the American Chamber of Commerce in South China said their primary operation target is to provide goods or services for the domestic market in China.
The proportion, however, was only 46 percent in 2006.

This fact, together with other positive signs, indicated that China still has a very good business environment, said Harley Seyedin, president of AmCham in South China.

The huge domestic market also provides significant profits for US companies which, in return, increased investment and added to their payrolls, the survey showed.

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About 82.5 percent of respondents said they made profits in China, the highest proportion since 2006, it said.
Seyedin said the proportion was 79 percent last year.

About 89 percent of the companies made additional investments last year, more than the survey results from early last year, Seyedin said.

Two-thirds of the respondents said they have raised their investment budgets in China for the coming three years.
The vast domestic market means huge business opportunities for both local and foreign businesses, Seyedin said.

The member companies also said they faced challenges of rising inflation, protectionism from other countries and the rising Chinese currency, the yuan, according to Seyedin.