US businesses in Hong Kong are confident in the Hong Kong Special Administrative Region (HKSAR)'s economic future despite the current chilly climate, according to an American Chamber of Commerce (AmCham) survey of its member companies.
AmCham's 2001 Business Outlook Survey, conducted by ACNielsen, was mailed to 971 member businesses and 354, or 36.5 per cent, responded between October 16 and 31.
Despite Hong Kong's current economic woes, 66 per cent of respondents anticipated "good" or "satisfactory" company performances next year.
"The current economic downturn will be short lived. Hong Kong's economic fundamentals are strong and we expect an economic recovery by 2003," said AmCham Chairman Paula DeLisle.
The survey found 49 per cent of respondents intend to expand business in Hong Kong and 41 per cent plan to add personnel in the next three years. Among the 67 per cent of member companies with regional headquarters in the SAR, 82 per cent plan to maintain their head offices in Hong Kong and 25 per cent intend to increase operations.
AmCham's member companies stressed the territory's key advantages, including its free port status, communications network, location, well-developed infrastructure, simple taxation system, and its legal and regulatory system.
But these companies wanted to see improvements in the SAR's housing costs, environment, cost of doing business and English language proficiency. The survey also polled US businesses outlook on the mainland's economic environment.
"With China's imminent accession to the World Trade Organization, we see a significant number of AmCham companies making initial or additional investments in Chinese mainland," said DeLisle.
More respondents this year gave a "good" rating to the mainland's business environment, up to 79 per cent from 71 per cent in 2000.
Seventy-two per cent of AmCham companies have operations on the mainland and 82 per cent intend to make additional investments over the next three years. These firms cited the mainland's domestic market expansion, positive economic outlook, improving infrastructure and low cost of labour as reasons for their optimism.
The survey was conducted in the shadow of the September 11 attacks on the United States and reflects the uncertainty that followed that disaster.
(China Daily December 7, 2001)
