Nev­er­the­less, much work lies ahead for all of us this year and be­yond...”

China Daily (Canada) - - FRONT PAGE -

The more chal­leng­ing busi­ness en­vi­ron­ment faced by US com­pa­nies has re­sulted in the high­est num­ber since the 2009 re­ces­sion, 31 per­cent, hav­ing no in­vest­ment ex­pan­sion plans in China for the com­ing year.

Stephen Shih, a part­ner at Bain and co-au­thor of the sur­vey, said: “Busi­ness in China is at a turn­ing point, and com­pa­nies with in­ter­ests here will have to de­cide whether to con­tinue pur­su­ing growth and in­vest­ment in China, or whether to pri­or­i­tize other growth op­por­tu­ni­ties.”

How­ever, progress in the eco­nomic re­struc­tur­ing to “the new nor­mal” of slower, more sus­tain­able growth driven by con­sump­tion is be­ing seen fa­vor­ably by US com­pa­nies. Growth in do­mes­tic con­sump­tion was cited as a key op­por­tu­nity for busi­ness by al­most half of the com­pa­nies.

The ser­vices sec­tor was the most op­ti­mistic con­cern­ing in­vest­ment en­vi­ron­ment, dif­fi­culty in ap­provals and how wel­come for­eign firms were in China.

A lot of hopes hang on the bi­lat­eral in­vest­ment treaty, in dis­cus­sion since 2008, that is ex­pected to deepen eco­nomic ties be­tweenChina and theUS.

“The BIT rep­re­sents a ma­jor op­por­tu­nity to im­prove the reg­u­la­tory en­vi­ron­ment, which can en­hance the abil­ity of US com­pa­nies to in­vest and in­no­vate and com­pete in China for the ben­e­fit of the coun­try’s econ­omy,” said Zim­mer­man.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.