News / Asia

Survey: Investor Optimism in China Declines

A worker walks on the roof of an office building construction site in Hefei, Anhui province May 6, 2013. China's economy grew 7.8 percent in 2012, its slowest pace in 13 years.
A worker walks on the roof of an office building construction site in Hefei, Anhui province May 6, 2013. China's economy grew 7.8 percent in 2012, its slowest pace in 13 years.
Shannon Van Sant
Investor confidence in China is declining, according to a survey from the European Union. The report comes on the heels of last week's International Monetary Fund's (IMF) announcement of a cut in China’s economic growth forecast.

The European Union’s Chamber of Commerce polled more than 500 of its members. The results show optimism among Western businessmen about the potential to profit in China is at its lowest point since China first opened to foreign markets.

"This year the results were quite, quite surprising in that there was a clear indication that the financial performance of the companies here have not been as strong as they have been in the past," said Adam Dunnett, secretary-general of the EU chamber.   

The survey, which was carried out in March, showed 64 percent of respondents reported profitability for 2012, down from 73 percent the previous year. Only 29 percent of respondents had a positive outlook for future profitability.  That was also down from 34 percent the year before. The EU report cited market access, labor costs and regulatory hurdles as obstacles to business growth in China.

Mark Secchia, an American owner of Sherpa’s food delivery service in China, says his biggest challenge is increased competition. He opened his company in 1999 and has expanded to four cities across China.

"In one sense it's gotten easier, but that's kind of, in my opinion, made it harder," Secchia said. "[When] I started my business, it was like the wild, wild West and anything goes and, yes, it was difficult to do things, but that was a barrier to entry that kept others away. As things have gotten easier, it's now a worse time to start a business in China because there are so many people doing it and it is so easy to do."

Concerns about China’s continued economic growth also concern Western investors. The nation’s economy grew 7.8 percent in 2012 - its slowest pace in 13 years - and registered a weak 7.7 percent expansion in the first three months of 2013.  

In April, the American Chamber of Commerce released a white paper on China highlighting many of the same challenges for American business owners in China. Still,  Greg Gilligan, chairman of the chamber, remains optimistic.

“If we stand here and look today, and look at actual results, as opposed to perceptions about the future, the actual results say that businesses are doing well and have maintained good performance over recent years," Gilligan said.

Despite slowing economic expansion and other obstacles cited by the EU survey, China remains one of the fastest growing economies in the world.

You May Like

Ukraine: Mysterious 'Roaming Tank' Reportedly Takes Aim at Smugglers

Ukraine's TV, print media, Facebook abuzz with reports a 'roaming tank' is on the loose, destroying vehicles of those involved in smuggling More

US Wildlife Service Begins Probe of Killing of Cecil the Lion

Minnesota man accused of killing beast is in hiding, has been asked to contact US officials; White House to review extradition petition More

Video Kerry Tour Will Cover Security, Iran Nuclear Deal

US secretary of state to visit 5 countries in the Middle East, South Asia in bid to strengthen economic and security ties, ease concerns over deal with Tehran More

This forum has been closed.
Comment Sorting
Comments
     
by: Schneider from: B.R.Deutschland
June 05, 2013 3:09 AM
We foreign businessmen are fed up with China that is a country of greedy people, unethical people, corruption by the local and central leaders, air pollution, contagious diseases, contaminated food and water, no rule for copy right, no respect for international laws, invasions in neighboring countries, and other countless evil matters. Bubble economy and high personnel cost will cause CPR to collapse in the not distant future. No need to stay in China any longer.

by: Mustaky from: France
June 04, 2013 2:54 PM
I have lived in China for the past 5 years and let me tell you... the so called "Arab Spring" is what about to happen in China... the complete and bloody overthrow of the criminal Communist political classes... its in the air... well, that and the stench of death decay and disease...

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Booming London Property a ‘Haven for Dirty Money’i
X
July 29, 2015 9:34 PM
Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.
Video

Video Racially Diverse Spider-Man Takes Center Stage

Whether it’s in a comic book or on the big screen, fans have always known the man behind the Spider-Man mask as Peter Parker. But that is changing, at least in the comic book world. Marvel Comics announced that a character called Miles Morales will replace Peter Parker as Spider-Man in a new comic book series. He is half Latino, half African American, and he is quite popular among comic book fans. Correspondent Elizabeth Lee reports from Los Angeles.
Video

Video Historic Symbol Is Theme of Vibrant New Show

A new exhibit in Washington is paying tribute to the American flag with a wide and eclectic selection of artwork that uses the historic symbol as its central theme. VOA’s Julie Taboh was at the DC Chamber of Commerce for the show’s opening.

VOA Blogs