5 Key Facts from this year’s Business Climate Survey In partnership with:

1. Average 2017 GDP Growth Forecast: 6.1% What is your company’s forecast for China’s GDP growth rate in 2017? For the first time, our members were asked were asked to provide specific estimates for China’s GDP growth in the coming year. Estimates ranged from 4% to 9%, but the majority expect growth to slow, and predict 6.1% GDP growth in 2017.

2. Inconsistent regulations and enforcement is the No. 1 challenge Please rank your top five business challenges in China. Respondents have again identified inconsistent interpretations of regulations and unclear laws and enforcement as their top challenge in China, followed by rising labor costs. But after dropping out of the top five concerns, increasing protectionism returned as the No. 3 challenge this year.

3. More than 4 out of 5 companies feel less welcome than before Do you feel foreign businesses are more or less welcome in China than before? The share of companies that said China seems less welcoming to foreign businesses than in the past rose from 77% to 81% this year. Some respondents attribute the change to the more difficult economic environment and increased protectionism. Others believe this is because China has grown to be less dependent on foreign investment, technology and management expertise. About 55% of respondents also feel that foreign companies in their industries are treated unfairly by policies and their enforcement relative to domestically invested companies.

4. Growth in domestic consumption the top opportunity Which of the following are important opportunities for your China business? While members expect relatively modest overall economic growth, they do see growth opportunities in specific areas. Companies in Technology and R&D-intensive industries, in Services industries, and even in Industrial & Resources industries all cite the growing and increasingly affluent middle class as a key opportunity. Members also cite digital technologies, including e-commerce, as opportunities for their China business.

5. Most members believe positive US-China tied critical to their business How important are positive bilateral relations between China and the US to your business growth in China? This year, 72% of respondents said that a positive bilateral relationship between the US and China is critical to their business success in China, a jump from 64% in 2015. Only 6% of respondents said that the bilateral relationship was not important to their business. Member companies in Technology and other R&D-intensive industries have the strongest beliefs in the need for a positive bilateral relationship.

See the full report on our website In partnership with: See the full report on our website http://www.amchamchina.org/policy-advocacy/business-climate-survey/