US firms balky on China units: survey

A survey by an American business organization in China shows US companies are starting to feel uneasy about their operations in the mainland.

The annual survey of members of the American Chamber of Commerce in China released on Wednesday shows that a quarter of US companies in the mainland have either moved or plan to move some activities out of China. That same survey also showed that 77 percent of respondents said they felt "less welcome" in the country last year.

About 68 percent of the nearly 500 companies in the American Chamber of Commerce survey said they plan to increase investment in China. However, 32 percent said they will not be making new investments in the country - the highest level since the global financial crisis.

While China's moderating growth prospects played some part in the results, observers also pointed to other factors for the survey's results.

"The reason for exit from China is declining profit opportunities," said Derek Scissors, a resident scholar on China at the American Enterprise Institute in Washington.

"Foreigners have complained about market access since the first day of opening up. But they have remained in China because the market potential has been so high. Now some firms see a ceiling on the growth of their China business and even the possibility that their businesses could shrink."

Daniel Rosen, founding partner of the consulting concern Rhodium Group in New York, said that while slowing growth is an important factor causing some US firms to shift resources out of China, it is not the only one.

(China Daily USA 01/21/2016 page1)