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Business / Economy

US companies eye service, energy and high-tech sectors

By Zhong Nan (China Daily) Updated: 2015-09-08 10:56

Companies from the United States are looking to increase their investments in South China's modern service, energy and high-end manufacturing sectors as the nation transitions to a more moderate phase of growth, the American Chamber of Commerce in South China said on Monday.

According to the 2015 Special Report on the State of Business in South China, conducted by AmCham South China through the first half of this year, 79 percent of US companies in the region are currently providing services or goods to the Chinese market as their primary business focus instead of creating goods or services for export.

The survey interviewed 275 member companies, including joint ventures and wholly foreign-owned enterprises, on issues related to business outlook, investment climate and market conditions.

Harley Seyedin, the chamber's president, said the report's findings indicate that US companies are eager to strengthen their position in modern technology-driven manufacturing and services as China upgrades its industries.

AmCham South China represents more than 2,300 US and international companies doing business in South China's Guangxi Zhuang autonomous region as well as in Guangdong, Fujian and Hainan provinces.

According to the report, 85.3 percent of participants responded that they considered the overall business environment in South China to be "good", "very good" and "outstanding", a notable increase over last year's results.

Forty-two percent of participants reported that in their opinion the business environment has improved somewhat or greatly over the past 12 months, while 38.9 percent reported that it had remained about the same.

"Even though some media reported that foreign businesses are withdrawing from China because of the country's slowing growth, this isn't true. We haven't found a single member from our chamber that has left the country," Seyedin said.

The report found that regulatory issues are the largest impediment to massive investment across China. From the perspective of foreign investors, the lack of transparency or the perception of a lack of transparency will continue to limit the number and scale of investments.

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