The results of the 2012 Business Climate Survey indicate increasing optimism about the outlook for revenue growth in 2012. The survey clearly demonstrates the growing importance of China to many companies as a driver of corporate growth, evidenced by
plans to increase investments in China this year.
However, companies continue to acknowledge the complexity of the operating environment, especially in terms of rising labour costs, increasing local competition and the ongoing challenges of IPR & legal enforcement, protectionism and bureaucracy. Despite this, most UK companies remain confident about the outlook for
their business in China.
The key messages that arise from this survey are the following:
- Despite worries over the global economic outlook and rising domestic competition, performance in 2011 was generally positive with the majority of respondents seeing an increase in revenue.
- China remains a key market, with the majority of respondents planning an increase in investment and remaining positive in their expectations for the coming year.
- Human resource issues continue to be a substantial challenge for business, with members tackling increasing labour costs and problems attracting and retaining skilled staff.
- Whilst domestic competition still struggles to compete in terms of technical innovation and management expertise, they showed significant improvement in marketing and branding.
- The key business challenges facing those in the China market continue to be bureaucracy, securing licences and protecting intellectual property.
- Despite intellectual property rights being cited as an important factor in China operations, the number of infringements that actually harmed operations was relatively low.
Visit www.cbbc.org to find out how the China-Britain Business Council can help you overcome the challenges of doing business in China.