The recent economic news from China has not really been a cause for jumps of joy, but it's not as pessimistic as most people expected. At least the Swiss managers in China are remaining confident, and they are even expecting higher or even much higher turnovers this year, according to a survey from the Swiss Center Shanghai.
58% of the companies questioned are convinced that their sales can be increased even further in China, only 7% are expecting a decline in turnover. With regard to profits, 45% are reckoning with better results, 11% with a drop.
This confidence can also be seen in the planned investments. 57% of the companies presume they will be increasing their China investments in the current year. Only 5% want to reduce their investments in China.
Most of the worries regarding business in China for the Swiss companies relate to the difficult and time-consuming search for suitable, local specialists. The economic slowdown, rising wage costs and the increasingly intense competition in the Chinese market are also causing headaches.
However, these challenges are not generally dampening the confidence of Swiss managers. This is due in part to the fact that although overall economic growth in China is slowing down, many sectors are still going well. And above all in those areas where Swiss companies are strong and good quality is demanded: high-tech, service provision and consumer goods.
Country Consulting China/Hong Kong (various dates in March and June)