A study released by The American Chamber of Commerce in South China (AmCham South China) reported that 2010 investment budgets for foreign enterprises appear to have increased by 44 percent - nearly recovering to pre-financial crisis levels- although 3-year budgets lag in recovery. AmCham South China estimates that its members will reinvest a minimum of USD9.4 billion over the course of the year, and notes that 90 percent of study participants consider the business environment to be good, very good or excellent. Furthermore, the Chamber estimates that its member companies have contributed to the creation of approximately 429,000 additional jobs for urban residents - about 4 percent of the 11 million total new urban jobs reported by Premier Wen Jiabao in his "2009 Government Work Report" during the 3rd Session of the 11th National People's Congress last Friday.
The study, named the 2010 Special Report on the State of Business in South China, was released alongside the Chamber's 2010 "White Paper," which collected the study results with what Chamber President Harley Seyedin called in his introduction "a highly-accountable narrative" about the contemporary business environment in the P.R.C., which he more candidly explained to correspondents as "more like an academic paper than the list of opinions and complaints you usually find in White Papers."
AmCham South China's "White Paper" suggests that both the U.S. and Chinese governments continue to resist protectionism, in addition to noting that foreign-invested enterprises in China, now paying the same taxes as domestic-invested enterprises and subject to the same laws and regulations, should be considered "Chinese" companies, similarly to how both foreign- and domestic-invested companies in the United States are considered United States companies for legal and regulatory purposes. The Chamber also suggested that its members consider innovating in design and production methods to reach the large, relatively untapped, market of individuals living in second- and third-tier cities and that the Chinese government continue its efforts to achieve greater transparency in its regulatory and legislative efforts, which was ranked for the fourth consecutive year as companies largest concern as well as the greatest source of uncertainty in the business environment.
The "White Paper" also notes that many of the most famously innovative companies in recent memory would not, were they being started today under similar circumstances, be able to incorporate in the P.R.C. due to regulatory requirements such as minimum amounts of registered capital and the necessity of an office lease prior to company registration, leading to the suggestion that relevant authorities revisit said regulations with an eye toward encouraging greater participation from individuals with good ideas but lower means.
AmCham South China has conducted its Special Report study annually since 2006; the 2010 "White Paper" is the second in the series. Both are available for download free of charge at http://www.amcham-southchina.org.
The study, named the 2010 Special Report on the State of Business in South China, was released alongside the Chamber's 2010 "White Paper," which collected the study results with what Chamber President Harley Seyedin called in his introduction "a highly-accountable narrative" about the contemporary business environment in the P.R.C., which he more candidly explained to correspondents as "more like an academic paper than the list of opinions and complaints you usually find in White Papers."
AmCham South China's "White Paper" suggests that both the U.S. and Chinese governments continue to resist protectionism, in addition to noting that foreign-invested enterprises in China, now paying the same taxes as domestic-invested enterprises and subject to the same laws and regulations, should be considered "Chinese" companies, similarly to how both foreign- and domestic-invested companies in the United States are considered United States companies for legal and regulatory purposes. The Chamber also suggested that its members consider innovating in design and production methods to reach the large, relatively untapped, market of individuals living in second- and third-tier cities and that the Chinese government continue its efforts to achieve greater transparency in its regulatory and legislative efforts, which was ranked for the fourth consecutive year as companies largest concern as well as the greatest source of uncertainty in the business environment.
The "White Paper" also notes that many of the most famously innovative companies in recent memory would not, were they being started today under similar circumstances, be able to incorporate in the P.R.C. due to regulatory requirements such as minimum amounts of registered capital and the necessity of an office lease prior to company registration, leading to the suggestion that relevant authorities revisit said regulations with an eye toward encouraging greater participation from individuals with good ideas but lower means.
AmCham South China has conducted its Special Report study annually since 2006; the 2010 "White Paper" is the second in the series. Both are available for download free of charge at http://www.amcham-southchina.org.
