Companies affirm desire to reinvest in China

Companies from around the world still have strong interest in reinvesting in China in 2022, despite the country's economic slowdown.

Harley Seyedin, president of the American Chamber of Commerce in South China, said more than 70 percent of companies surveyed and studied have reinvestment plans in China for 2022, including 76 percent of American companies.

"The percentage of companies with budgeted reinvestment of more than $250 million in China increased from 5 percent in 2021 to 10 percent in 2022," Seyedin said at a news conference in the Guangdong provincial capital on Tuesday. AmCham South China also released its 2022 White Paper on the Business Environment in China and 2022 Special Report on the State of Business in South China at the conference.

This year, more than 230 companies have been surveyed and studied, he said. According to Seyedin, it is estimated companies will reserve $26.5 billion from profits for reinvestment in China in 2022 and the next three to five years, a dramatic growth of 45 percent compared to the previous year.

"About 72 percent of surveyed companies intend to expand in China over the next three years, seven percent up from last year," Seyedin said. "China is enjoying the highest popularity of all time as one the preferred investment destinations by an overwhelming majority of the studied companies, and about three-fifths of the companies considered their overall return on investment in China last year to be higher than their global ROI."

Companies still have huge faith in the Chinese market, with 77 percent choosing to keep their investment in China in the previous year. "And not a single company showed intention to leave China completely," he said. "2021 marks the fifth consecutive year Guangzhou remains the top reinvestment destination in China."

Shenzhen, Shanghai and Beijing are also ranked the most favored reinvestment cities by the surveyed companies," Seyedin said.

The business environment in South China shows an upward trend in recent years, he added. The release was attended by more than 300 government officials, business executives and 40 foreign consulates mostly represented by their consuls-general.

zhengcaixiong@chinadaily.com.cn