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Chinanews, Guangzhou, Mar1. 17 – The American Chamber2 of Commerce in Guangdong recently conducted a survey on the economic situation in the region. The survey shows that most foreign companies that make investment there think that economic environment in the region is basically good. Many companies have already generated profits or will turn profitable within the next two years. Over 90% of the foreign companies intend to increase their investment in the region.
About 364 foreign companies, including wholly foreign-funded ones and joint3 ventures, took the survey. These companies come from the United States, European Union, Japan, China’s Hong Kong and Taiwan. In the survey, 91% of the companies say that economic environment in the south China region is “basically good,” a proportion higher than that of last year. American companies, in particular, think that business environment in the south China region is “excellent.” 93% of the companies say they have made profits, or will make profits within two years. All companies are confident that their companies will generate profits in three or five years. Among all companies that are members of the American Chamber of Commerce, 30% say that they can return their profits made in the Pearl River Delta4 back to their parent companies, with the total sum reaching 235 million US dollars every year. Nearly 90% of the companies in the survey have reinvestment plans and their investment figure is bigger than originally expected. 13% of them have reinvestment plans with a total sum exceeding 50 million US dollars each, and 58% of them intend to invest 10 million US dollars in the next four years. Most notably5, a considerable number of foreign companies want to expand their business area from the Pearl River Delta region to China’s north and northwest regions within the next three years. This indicates that their business in the south China region will help them to make further expansion in other areas in China. The total investment of the 110 American companies that are members of the American Chamber of Commerce will amount to sevral billion US dollars, and most of them will invest in Guangdong, an economically hotspot in China. Their reasons for selecting this area is that Guangdong being located next to Hong Kong can offer plenty of business opportunities. The transportation and logistic facilities here are very good, which will make the Pearl River Delta region a role model for other regions in China in terms of economic development. While making contributions to China’s economy, the US companies in China will also help balance the Sino-US trade in future, said Harley Seyedin, Chairman of the American Chamber of Commerce in Guangdong.
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