More AmCham China member organizations experienced business challenges in March 2020 compared to February caused by COVID-19, particularly consumer, industrial and resources sector

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Firms Detail COVID-19 Impact as Recovery Continues

AmCham Member Survey March 2020 – More AmCham China member organizations experienced business challenges in March 2020 compared to February caused by COVID-19, particularly consumer, industrial and resources sector

Summary:

AmCham China’s March 2020 survey results on 119 members, mostly from senior leadership, showed intensified effect of COVID-19 to businesses compared to February 2020. Key findings include:
  • More Experiencing Challenges – Seven in ten affected by domestic travel disruptions as of March 2020 (versus 51% in February), with half experiencing significant revenue declines (up from 28%), and 39% saying demand for products is down (versus 22%)
  • Greater Revenue Declines Ahead – 60% believe 2020 revenues in mainland China will decline by 10-50% if operations are not back to normal by August 30, 2020
  • Costs of Delays Escalate – 14% could lose at least half a million yuan in costs per day if delays persist (up from 10%), while 50% thought it is too early to assess
  • Most Impacted Sectors – Consumer industry and Resources and Industrial (e.g., agri-business, transportation, oil and gas, etc.) sectors most pessimistic on outlook, with 38% of both expecting decrease of 50% or more to 2020 China market growth
  • Continued China Investments – 40% said they will maintain previously planned investment levels in China (up 17 percentage points) and one-third thought it is too soon to determine (down from 50%)
  • Possible U.S. Government Responses – Include commercial advice on business opportunities and COVID-19-related business policies (22%), guidance on Phase I trade deal implementation (19%), and relaxed travel restrictions into U.S. in line with World Health Organization recommendations (19%)
  • Needed Support from China – Members said tax alleviation (20%), and consistency in central, provincial, and local-level policies on business operations and travel restrictions (13-14%) could help foreign businesses most
To read full report, please visit https://www.amchamchina.org/uploads/media/default/0001/12/345fc838ca7dcbc9a7fd9c4161caa494abc227de.pdf

For more information, visit the AmCham China website.
Company: AmCham China
Categories: Business operations, General management, Strategy
Source:

Original publication date: March 25, 2020

Date last updated: April 28, 2020