Guangzhou has been selected as the top preferred reinvestment destination for four consecutive years, according to a special report released by the American Chamber of Commerce in South China (AmCham South China) on May 24th.
The bilingual 2021 Special Report on the State of Business in Guangzhou aggregates and quantitatively analyzes the experiences of the 115 companies that participated in the study.
According to the study, most companies ascribe their determination to establish a company in Guangzhou to the growth potential of the Guangzhou market, followed by the advantages of proximity to Hong Kong SAR, Macao SAR, and Taiwan region, and better infrastructure than other places in China.
90% of companies have achieved profitability in Guangzhou, and most of the rest expected to become profitable with two years or less.
Dr. Harley Seyedin, President of AmCham South China, said, “Without a doubt that vaccines will accelerate the rebound in 2021. Faced with the difficulties brought on by COVID-19 in 2020, our member companies succeeded in growing and making profits with supportive policies and practical assistance from the Guangzhou government.”
The study also shows Guangzhou has been stepping up efforts to optimize the business environment to create the best investment destination for global enterprises. Examples abound that Guangzhou has launched a series of policies and announced specific measures to stimulate market vitality and enhance trade facilitation.
The report shows that 78% of the surveyed companies report an overall positive return on investment in China. Approximately 70% of the companies plan to expand in Guangzhou in the next three years.
The primary factor that incentivizes companies to increase investment or shift investment to Guangzhou is the growth potential of the local market.