25% of US Companies are Leaving China

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Friday, January 22, 2016 

under Education & Career by Enjoy Team


According to the 2016 Business Climate Survey Report released by the American Chamber of Commerce in China (AmCham), 25% of US companies have either already moved, or plan to move out of China.

 

The largest portion of leavers (49%) have their eyes on other developing Asian countries, while 38% are just heading back to th US.

 

Among their primary concerns are rising labour costs or "strategic re-prioritization of other countries." Most tellingly, perhaps, is the fact that a significant number reported that they were leaving because they lacked "competitiveness vs. local competitors."

 

Don't be too quick to call the death-knell of American business in China, though. Although only 60% of member companies considered China a top investment priority (down from 80% in 2012), Consumer and Services companies are still interested in remaining in China. These are sectors where US companies typically have the edge. That is, if they can overcome the market access barriers that 1 in 6 of them reported as a primary obstacle to their success.

 

If you'd like to read the full report, you can download it from the AmCham website here.


What do you think? Is US business in China struggling as much as the report suggests? What's your experience?

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