Business Confidence Survey 2012
Despite significant market access barriers, China remains a strong economic power. This is the key message of the 2012 China Business Confidence Survey that we published together with the European Union Chamber of Commerce in China.
Of the nearly 600 companies that participated in the survey, three quarters reported that they see China as a top 3 investment destination in the future. Supporting this figure, 63% of respondents said that they were already planning new investments in China and more than half are looking to expand within the country by entering new provinces.
European companies also displayed their trust in the Chinese economy – 61% of them increased the number of permanent staff positions in 2011 and, in a further pledge of trust, nearly three-quarters of those who answered the survey stated that they planned to hire more people over the next two years.
The survey shows that European companies are aware they must start implementing new strategies in order to remain competitive, notably cost reduction. Indeed, the percentage of respondents who stated that cost reduction, as opposed to revenue growth, was now their priority increased significantly from 8% to 14%. The survey also made clear that European companies have decided to focus their future investments on three main areas to differentiate against local competitors: branding, marketing and sales, and HR.
Visit the EUCCC website for more information. You can also download the Chinese version of the report there.