Encouraged by China's economic rebound following the optimization of its
COVID-19 control measures, the majority of international businesses in the
country plan to further increase their investments in China, with supply chain,
technology and innovation, and digital capabilities and platforms arising as the
top three investment priorities, according to an HSBC report released on
Monday.
By polling more than 3,300 companies from 16 major economies, HSBC revealed
that 87 percent of the interviewed international companies will increase their
business in China in the next 12 months.
About 73 percent of the respondents expect to increase their supply chain
footprint in China over the next three years, with one in four expecting to
"increase significantly".
Southeast Asian businesses are especially interested in expanding their
supplier networks in China. Such interest is the strongest among surveyed
Indonesian companies at 92 percent, followed by those from Vietnam and the
Philippines.
Manufacturers are particularly interested in growing their supply chains in
China, with 74 percent likely to increase such investment over the next three
years, said HSBC.
Mark Wang, president and CEO of HSBC China, said that high inflation, lack of
growth momentum and supply chain risks are the major concerns of overseas
companies at present as they face many complexities and changes in the global
economy.
However, the Chinese market continues to attract attention from companies
around the world given its continued economic recovery, massive market size and
deeply integrated supply chains. As China's high-quality economic development
advances, more international companies will benefit from China's growth,
especially the potential generated by emerging economies and low-carbon
transition, Wang said.
As HSBC discovered in the survey, a majority 88 percent of interviewed
international businesses agree that China's digital economy is opening up new
investment opportunities.
On top of that, one-third of the respondents believe that China takes the
lead worldwide in terms of e-commerce, while a similar proportion see the
country as a leader in artificial intelligence, machine learning and digital
payments.
Thanks to China's large domestic market, 39 percent of international
companies see China as an attractive place to develop and test new technologies
and products, according to the HSBC report.
China's green industry is also lucrative, with renewable energy, electric
vehicles and energy-efficient products likely to churn out the greatest growth
potential, said international businesses interviewed by HSBC.
Therefore, nearly 55 percent of the respondents plan to offer greener
products in China, including energy-saving products, recyclable products and
products using sustainable materials. The United States and Germany are more
prone to guide consumers' habits by providing more incentives to encourage the
purchase of green products and services, according to HSBC.
Meanwhile, 49 percent of the polled companies will invest in making
manufacturing facilities or office buildings more energy efficient and 48
percent plan to make their operations more sustainable.
The report was released for the sixth consecutive year during the China
International Import Expo.
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