Overall, the Agriculture industry is slightly more negative in its assessment of the business climate in China than foreign business in other sectors. More industry respondents report losses in their company’s financial performance, 2015 EBIT (earnings before interest and tax) margins, and EBIT margins as compared to respondents’ global 2015 margins. Inconsistent or unclear laws and regulations and rising labor costs are reported as the top two business challenges. One-fourth of industry respondents have moved capacity outside of China in the last three years or are planning to do so in the next three years. Nevertheless, 65 percent of respondents expect to increase headcount in China; at a much higher rate than the broader foreign business community.
Key Points of this Report:
- Only six percent of industry respondents are optimistic about cost competitiveness or cost levels in China.
- Almost two-thirds cite high expectations of pay/benefits/expat packages as the main challenge in retaining the right talent in China.
- One-third of agriculture industry respondents report a forecasted increase of 10 percent or more in 2015 China revenue compared to 2014.
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This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.