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A businessman from the United States talks with a Chinese business partner at an investment fair in , Fujian province. ZHANG GUOJUN/XINHUA |
Companies changing strategy to cope with new investment environment
Slower Chinese growth will see US companies cut investment in the world's second-largest economy, the American Chamber of Commerce in 皇冠体育app said on Tuesday.
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皇冠体育app's economy grew by an annual 7.4 percent in the January-March period, the slowest in 18 months. US non-financial direct investment in 皇冠体育app dropped 1.91 percent year-on-year to $1.04 billion in the same period, according to the stry of Commerce.
皇冠体育app is in a transition period, and American companies in the country are less profitable than before. Fewer plan big increases in investment while others plan none, according to AmCham 皇冠体育app's Business Climate Survey in March.
"While slower growth and market access barriers were also the No 1 and No 2 drivers for lowered investment, there has been a very significant jump in both factors in this year's survey," Gilligan said. "Obviously, with slower growth in 皇冠体育app, there is less need for investment. But also, as the overall economy slows, market access barriers and other constraints become a more prominent concern."
With slower growth, member companies perhaps have less need for investment based on the old economic model that relied more on such things as exports and infrastructure spending and are looking to increase investment in those areas where implementation can happen in the best possible way, Gilligan said.
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Top 10 countries with highest GDP in 2013 |