U.S. companies have felt the impact of the global recession on their China operations, but remain optimistic about their prospects in that market, according to a survey released by the US-China Business Council (USCBC) on Wednesday.
"China has been a relatively bright spot for companies in the midst of the global slowdown," said USCBC President John Frisbie in a statement. "There is no doubt that the global economic recession has affected US companies' China sales, but the impact has been less than in other markets."
The survey was conducted in the summer, when global economic data was still looking dim, according to the USCBC.
Survey responses indicate that the recession's impact on the China operations of USCBC member companies has included reduced sales, slowed investment plans, and, for some, workforce reduction.
However, 51 percent of respondents project their revenues in China will grow in 2009, and 84 percent say their China operations remain profitable.
For the most part, business opportunities from China's large stimulus package have not yet been realized by most USCBC members, although companies in certain sectors, such as infrastructure-related industries, have benefited from stimulus project spending, according to the survey.
Indirectly, however, many companies report a general increase in business related to China's overall economic recovery that is driven in part by an expansion of bank lending.
"U.S. companies remain optimistic about their prospects in that market once the recession has passed," Frisbie said.
"Almost 90 percent of USCBC's members indicate that China remains the top or among the top five priorities for their global investment plans. It remains a marketplace with dynamic development," he noted.
