AmCham survey forecasts less China reinvestment

Caixin reports profit reinvesting in China by foreign and domestic companies operating in the nation’s factory-heavy south is forecast to fall this year, highlighting a possible waning of the Asian giant’s competitive edge, according to a survey by AmCham. Planned asset purchases with profits from previous investments are projected to decline 4.12% in 2017 year-on-year to $12.57 billion among 230 firms – about 60% foreign-linked and 30% Chinese – responding to a survey released Wednesday by AmCham South China. The projection, based on the polled companies’ 2017 budget forecasts, contrasts sharply with an 8.79% increase in reinvestment planned by those responding to a similar AmCham survey last year. The latest findings were included in the 2017 White Paper on the Business Environment in China that detected “for the first time” a shifting of company funds from southern China to other markets, suggesting slippage for China’s competitiveness.