AmCham China released results of February 2020 survey on impact of COVID-19 to member companies, including foreseen declines in 2020 market outlook, increased operational costs, and more

Summary:

American Chamber of Commerce in China published results of survey on 169 member companies, mostly senior leadership, conducted on February 17-20, 2020 regarding impact of COVID-19 to their global and China operations. Key findings include:

• Main Challenges – More than half (51%) impacted by global travel disruptions, 45% with reduced staff productivity, and one-third with increased operational costs
• Sectoral Impact – Over 50% of respondents in resources and industrial industries experience global and China supply chain disruptions, compared to 24-31% of technology and R&D intensive companies, while 40% in services sector have reduced employees
• Declines to 2020 Forecast – Nearly half (48%) expected some decrease to their industry’s 2020 forecasted market growth, with consumer sector most affected, while 42% said it is too early to tell
• Planned Investments – One-quarter also intend to decrease planned investment in China operations, 23% plan to retain it at same level, and half said it is too soon to assess
• Two-Year Outlook – 44% pessimistic on bilateral relationship between U.S. and China, while one-third still optimistic on regulatory environment
• COVID-19 Donations – 70% provided cash and in-kind donations to affected areas, with 9% deploying technical expertise and personnel, and 14% still planning to give in future

To read full report, please visit https://www.amchamchina.org/uploads/media/default/0001/12/2d4eedc6090762958f083af0865a94d68422f189.pdf

For more information, visit the AmCham China website.

Original publication date: February 27, 2020

Date last updated: April 21, 2020