Ridzwan Abdul Rahman, Self employed (2000-present) answered.
There are more than half a million foreign companies operating in China. Fifty companies is a negligible number!
The following should be considered:
First, foreign firms have been moving in and out of China all the time. Some firms enter with business strategies that fail and then had to leave. An example is Occidental Petroleum, which entered China in 1983 with a flawed business strategy and was forced to write off its $250 million investment when it withdrew in 1990.
Other foreign firms, especially those making labor-intensive consumer goods, did well in China for many years, but eventually, as China's wages continued to rise, moved production to other countries with lower wages.
Second, FDI in China is currently almost $140 billion per year, meaning that thousands of new foreign firms are opening in China every month.
Despite US tariffs on China’s exports to the United States, it appears that multinational firms, including those based in the United States, continue to find China an attractive environment for new investment.
A recent member survey by the US-China Business Council found that 97% reported that their operations in China are profitable, and 87% said they had not relocated and had no plans to relocate any of their activities (most of the remaining 13% might relocate some of their activities to other countries).
According to the survey, the main reasons for companies moving out of China are as follows (most companies give more than one reason) :
58% : Increasing costs in China
50%: Increased costs or uncertainties resulting from US-China trade war
25%: Regulatory changes in China
25%: Political pressure from US
17%: Market access restrictions
17%: Rising competition from Chinese competitors
17%: Other reasons
There are more than half a million foreign companies operating in China. Fifty companies is a negligible number!
The following should be considered:
First, foreign firms have been moving in and out of China all the time. Some firms enter with business strategies that fail and then had to leave. An example is Occidental Petroleum, which entered China in 1983 with a flawed business strategy and was forced to write off its $250 million investment when it withdrew in 1990.
Other foreign firms, especially those making labor-intensive consumer goods, did well in China for many years, but eventually, as China's wages continued to rise, moved production to other countries with lower wages.
Second, FDI in China is currently almost $140 billion per year, meaning that thousands of new foreign firms are opening in China every month.
Despite US tariffs on China’s exports to the United States, it appears that multinational firms, including those based in the United States, continue to find China an attractive environment for new investment.
A recent member survey by the US-China Business Council found that 97% reported that their operations in China are profitable, and 87% said they had not relocated and had no plans to relocate any of their activities (most of the remaining 13% might relocate some of their activities to other countries).
According to the survey, the main reasons for companies moving out of China are as follows (most companies give more than one reason) :
58% : Increasing costs in China
50%: Increased costs or uncertainties resulting from US-China trade war
25%: Regulatory changes in China
25%: Political pressure from US
17%: Market access restrictions
17%: Rising competition from Chinese competitors
17%: Other reasons
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