《2021年在美中资企业年度商业调查报告》（英文）_86页_26mb

2021 Annual Business Survey Report on Chinese Enterprises in the United States

Core Content Summary

The 2021 Annual Business Survey Report on Chinese Enterprises in the United States, conducted by the China General Chamber of Commerce – USA (CGCC) with support from Ernst & Young LLP (EY), provides an in-depth analysis of the challenges and opportunities faced by Chinese companies operating in the U.S. The survey collected responses from 183 companies, representing a broad range of sectors, and included qualitative insights from executive interviews.

Main Findings

1. Impact of the Pandemic

• Negative effects on revenue and profitability: The pandemic significantly impacted the financial performance of Chinese companies in the U.S., with half of respondents reporting minor negative effects and 35% experiencing severe impacts.
• Sector-specific impacts:
  • Consumer-facing businesses and real estate were the most affected.
  • Financial services, telecommunications, and utilities were relatively less impacted.
  • Health care saw some positive effects due to its focus on pandemic response.
• Employment changes:
  • Health care and telecommunications increased hiring and extended working hours.
  • Most sectors faced negative impacts, with some sectors having to downsize or cut hours/pay.

2. Optimism and Strategic Adjustments

• Optimistic outlook: Despite challenges, surveyed companies expressed optimism about the U.S. business environment and the future of U.S.-China economic cooperation.
• Strategic focus shifts: Companies are increasingly focusing on brand recognition, digital transformation, and long-term competitiveness.
• Digitalization and innovation: Companies are accelerating digital transformation, product innovation, and automation to enhance their long-term resilience and profitability.

3. Parent Company Commitment

• Long-term commitment: Parent companies remain committed to the U.S. market, even accepting lower profitability than in China.
• Reinvestment: 65% of surveyed companies reinvest all profits into U.S. operations, which has led to a growing share of global revenues from U.S. operations.

4. Compliance and Regulatory Challenges

• Regulatory compliance: Companies are making ongoing investments in compliance due to the complexity of U.S. laws and cultural differences.
• Shift in compliance challenges: The main challenge has moved from lack of knowledge to navigating complex regulations and potential legal conflicts between U.S. and Chinese laws.
• Compliance actions: Strengthening internal systems and procedures has become the top priority for compliance, surpassing professional training and third-party cooperation.

Key Sectors

a. Financial Services

• Second-largest sector: 14% of respondents operate in the financial services sector.
• Services offered: 41% provide wholesale banking services, 36% offer trade finance.
• Resilience: Companies in this sector reported relatively better performance during the pandemic, with only 17% experiencing severe negative impacts.

b. Energy and Electric Vehicles (EV)

• Focus on sustainability: Companies are developing long-term low-carbon strategies to address climate change.
• EV sector interest: Some companies are evaluating opportunities and challenges in the U.S. EV market due to technological advancements.

c. U.S. Capital Market Access

• IPO preference: The U.S. remains a top choice for Chinese companies to launch IPOs for global exposure and brand enhancement.
• Public relations: Companies believe increased PR efforts could improve understanding among U.S. market participants.

Business Environment Outlook

• Worsening conditions: 79% of surveyed companies believe conditions have worsened since the 2020 survey, with 29% reporting substantial deterioration.
• Uncertainty and risks: Companies are more cautious about the U.S. business environment, but remain optimistic about the future.
• Recovery expectations: Expectations for recovery vary, with some anticipating it to take less than six months and others more than three years.

Recommendations and Insights

• Strengthen brand and reputation: Companies are investing in brand recognition and public relations to counter anti-China sentiments.
• Enhance compliance systems: Continued focus on legal and regulatory compliance is essential for long-term operations.
• Leverage digital transformation: Digitalization and automation are seen as key for improving efficiency and competitiveness.
• Focus on risk management: Companies are adapting to manage emerging risks and maintain a flexible cost base.

Demographics

• 183 surveyed companies: Representing a wide range of sectors, including industrials, financial services, energy, consumer discretionary, real estate, and others.
• Corporate structure:
  • 69% used greenfield investments or new business entities.
  • 26% used mergers and acquisitions.
  • 26% used joint ventures.
• Listing status:
  • 59% are not publicly traded.
  • 41% are listed in Asian markets.
  • Only 9% are already listed or planning to go public in the U.S.

Conclusion

The report highlights the resilience and adaptability of Chinese companies in the U.S. market, despite the challenges posed by the pandemic and evolving U.S.-China relations. Companies are focusing on long-term strategies, including digital transformation, brand building, and compliance, to maintain and enhance their presence in the U.S. CGCC continues to support these efforts through research, dialogue, and engagement.