This Services sector report includes data from human resources, accounting, consulting and public relations firms, among others. Overall, companies in this industry are more optimistic in their assessment of the business climate in China than foreign business in other sectors. Slightly over three-fourths of companies in this industry characterize their company’s financial performance in China as profitable or very profitable. 78 percent of industry respondents forecasted increased revenue in 2015 as compared to the previous year and over half forecasted increases EBIT (earnings before interest and tax) margins for the same period. Nearly one-third of industry respondents do no plan to increase investment in China operations for 2016.
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Significant challenges from rising labor costs remain; specifically rising salary and wage expectations. In total, 94 percent of industry respondents report that they expect increases in the average labor costs per employee in 2016 compared to 2015.
Key Points of this Report:
- Only five percent of industry respondents report losses in their company’s financial performance in China for 2015.
- Half of industry respondents cite inconsistent or unclear laws and regulations as a top business challenge.
This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.