- Among US firms doing business in China, we estimate 75% have remained profitable during the pandemic. Companies that sell their products in China have fared better than companies that are in the supply chain business and sell their products abroad.
- European companies are here to stay in China. As China reopens, European companies are ready to develop new business, new cooperation, and new partnerships in China.
- Localization can be challenging and expensive. European and American companies that have the size and scale to absorb the costs are doing so, but smaller companies are taking more of a wait-and-see approach.
- To be successful in China companies need to be comfortable operating under uncertainty. Many Chinese regulations are still work in progress. It is important to understand both the letter of the law and the spirit of the law.
- It’s hard to predict exact timing of the Chinese economic rebound, but it is clear the worst case scenario has been avoided. Measures from the People’s Bank of China have reduced tail risk significantly, making it likely for the Chinese banking system to remain strong and sound and ready to so more to support the economy.
- It is in the interest of China and the US to find ways to work together while managing their differences, and we are hopeful that the two governments will try to improve relations.
A recent fireside chat at the Greater China Conference (GCC), hosted by Hayden Briscoe, explored how global companies are investing in China and what they are planning for 2023 and beyond. Multinational corporations (MNCs) recognize the size and potential of the market as well as the importance of being in China, but the costs of doing business have undoubtedly risen in the past few years. Bruno Weill, National Vice President for European Union Chamber of Commerce in China, and Eric Zheng, President of the American Chamber of Commerce in Shanghai, offered perspectives from American and European companies and their on-the-ground experiences in Shanghai and Beijing as China accelerates its reopening and refocuses on the economy.
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