Guangzhou selected top preferred reinvestment destination for four

consecutive years

 

GUANGZHOU, CHINA –May 24, 2021 – The American Chamber of Commerce in South China (“AmCham South China”) today released its 2021 Special Report on the State of Business in Guangzhou.


Because China is a vast continental country, US Chamber of Commerce in Washington, D.C., has licensed four primary American Chambers of Commerce in China. Each of these American Chambers represents their own members in their geographic areas. All American Chambers in China are equal and independent of each other and report directly to the US Chamber of Commerce in Washington, D.C. There is no main or parent American Chamber of Commerce in China. The American Chamber of Commerce in South China (AmCham South China) represents over 2,300 members which account for nearly 40% of all US-China business, trade and investments. It focuses on provinces of Guangdong, Hainan and Fujian and the Guangxi Autonomous Region. The national headquarters of AmCham South China are based in Guangzhou City, Guangdong Province. AmCham South China operates offices in Shenzhen, Xiamen, Fuzhou and Shunde.


The bilingual 2021 Special Report on the State of the Business in Guangzhou aggregates and quantitatively analyzes the experiences of the 115 companies who participated in the Chamber’s State of Business study. It provides a meaningful context for this year’s responses on the business environment and development trends in Guangzhou straight from the mouth of companies operating in the heart of it.

 

The study shows Guangzhou has been stepping up efforts to optimize the business environment with the aim of creating the best investment destination for global enterprises. Examples are abound that Guangzhou has launched a series of policies and announced specific measures to stimulate market vitality as well as enhance trade facilitation.


Key takeaways of the 2021 Special Report on the State of Business in Guangzhou:


-90% of the studied companies have already achieved profitability in Guangzhou. A majority of the rest expected to become profitable with two years or less.


-78% of the surveyed companies report positive overall return on investment in China. Despite the fact that global economy remains liable to setbacks owing to COVID-19, most of the companies still take a sanguine view of the business outlook in Guangzhou.


-Guangzhou is doubtlessly one of the most popular investment cities with over 95% of companies selecting it as one of their investment destinations.


-Compared with 2019, 43% of companies report an increase in reinvestment in Guangzhou in 2020 while merely 20% report a decrease in reinvestment under the impact of COVID-19 and other factors.

-The primary factor that incentivizes companies to increase investment or shift investment to Guangzhou is the growth potential of local market, followed by preferential policies and uncertainty of COVID-19 pandemic in other countries and regions.


-Approximately 70% of the companies plan to expand in Guangzhou in the next three years.


-99% of the studied companies consider the business environment in Guangzhou excellent or good or neutral.


-Most of the companies ascribe their determination to establish a company in Guangzhou to growth potential of Guangzhou market, followed by advantage of proximity to Hong Kong, Macao and Taiwan, as well as better infrastructure than other places in China.


“In many ways, 2020 was a disappointing year that will long be remembered. However, we made it through together by helping each other. We worked feverishly with the Guangzhou government for a speedy return back to China of our member company executives, as well as teachers and administrators of international schools.” said Dr. Harley Seyedin, President of AmCham South China. He added, “It’s without a doubt that vaccines will accelerate the rebound in 2021. Faced with the difficulties brought on by COVID-19 in 2020, our member companies succeeded in growing and making profits with supportive policies and practical assistance from Guangzhou government. Like a phoenix, we have risen again from what may have been certain catastrophic circumstances.”

 

The report can be downloaded free of charge from the chamber’s website at
www.amcham-southchina.org/amcham/static/publications/publications.jsp.

 

About The American Chamber of Commerce in South China

The American Chamber of Commerce in South China (AmCham South China) is a non-partisan, non-profit organization dedicated to facilitating bilateral trade between the United States and the People’s Republic of China. Certified in 1995 by the US Chamber of Commerce in Washington DC, AmCham South China represents more than 2,300 corporate and individual members, is governed by a fully-independent Board of Governors elected from its membership, and provides dynamic, on-the-ground support for American and International companies doing business in South China. In 2019, AmCham South China hosted more than 10,000 business executives and government leaders from around the world at its briefings, seminars, committee meetings and social gatherings. The American Chamber of Commerce in South China is a fully-independent organization accredited by the US Chamber of Commerce in Washington, D.C. All AmChams in China are independently governed and represent member companies in their respective regions.

 

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