Majority Chinese companies concerned over tightening U.S. oversight
Some 53 percent of the Chinese companies who have businesses in the United States believe that the current U.S. administration will tighten its general oversight of foreign companies, according to 2017 Annual Business Survey Report on Chinese enterprises in the U.S.
The survey also showed 63 percent of Chinese companies believe that merger and acquisition transactions by Chinese companies will be subject to more frequent and stricter reviews.
In addition, the Committee on Foreign Investment in the U.S. (CFIUS) review remains a concern for Chinese companies. A quarter of the companies surveyed consider CFIUS review to be politicized and opaque, the report said.
Despite the challenges, 87 percent of Chinese companies will reinvest all or most of their U.S. profits in U.S. operations, as they are committed to long-term investment, said the report.
Eighty-six percent of companies expect their U.S. revenue to grow in the next three to five years.
It is the fourth year in a row that China General Chamber of Commerce - U.S.A. (CGCC), and CGCC foundation have conducted survey on Chinese companies' assessment of the U.S. market, their business performance, corporate management, and strategic development.
The survey respondents this year account for the clear majority of Chinese investment volume and approximately 200,000 jobs in the United States. ■