80% foreign companies optimistic about China

GUANGZHOU - Nearly 80 percent of foreign companies are optimistic about the Chinese economy, according to a survey released Wednesday.

According to a survey in two reports released by the American Chamber of Commerce in South China, about 80 percent of more than 230 foreign companies interviewed made a profit in China in 2016.

"The survey found that around 79 percent of foreign companies are confident about China's economy despite the overall economic slowdown," said Harley Seyedin, president of the American Chamber of Commerce in South China.

The reports said that China is facing competition from other Asian countries and regions in attracting foreign investment. Members of the American Chamber have lowered investment for 2017 by 4.12 percent to $12.6 billion.

"As 30 percent companies said there was no shift in their planned investment to markets outside China, quite a number of companies have transferred part of their planned investment to other Asian markets," he said.

Rising operating costs are a major driving factor for diverting investment to other destinations, the reports said.

But many companies are still positive over their long-term development in China. Sixty-five percent of the surveyed companies are planning to expand their investment in China in the coming three years, according to the reports.