Overall, AmCham China member companies in the Media and Entertainment (M&E) industry are significantly more optimistic in their assessment of the current business climate in China than foreign business in other sectors. 92 percent of industry respondents forecasted revenue increases for 2015 as compared to 2014 while none forecasted revenue losses. The same holds true for forecasts about earnings before interest tax (EBIT) margins.
Foreign companies in the M&E industry view their unique manufacturing techniques and branding as significant competitive advantages over domestic Chinese competitors. Nevertheless, challenges in the regulatory environment remain. Almost two-thirds of industry respondents are pessimistic about the regulatory environment looking forward for the next two years. Intellectual property rights infringements are areas of significant concern to industry respondents. Rising salary and wage expenses as well as difficulty attracting skilled executive or managerial staff are top human resources challenges.
Key Points of this Report:
- Only 8 percent of M&E companies plan to move capacity outside of China in the next three years while 11 percent of foreign businesses in other sectors plan to do the same.
- Industry respondents expect slight increases in the average labor costs for employee in 2016 vs. 2015. 50 percent of respondents expect an increase of 0-10% while 42 percent expect an increase of 0-20%.
- While nearly every other industry is reporting lower levels of investment increases in China, M&E members have been showing increased levels of investment since 2013.
Download the full report (free for AmCham China members)
This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.
