Overall, AmCham China member companies in the Oil, Gas, and Energy industry are less optimistic in their assessment of the business climate in China than foreign business in other sectors. Nearly two-thirds of survey respondents in the industry forecasted negative or comparable China revenues for 2015 as compared to 2014. Over half of the Oil, Gas, and Energy company respondents reported financial losses or having broken even in China in 2015. While industry overcapacity, increasing Chinese protectionism and corruption remain top business challenges, inconsistent or unclear laws and regulations is cited as the top business challenge for the first time. Nevertheless, respondents view their development and innovation and their technology and intellectual property as significant competitive advantages over domestic competitors. Even though industry overcapacity remains a number two challenge, companies are still optimistic towards domestic market growth and profitability potential.
Key Points of this Report:
- Only 25 percent of industry respondents view the quality of China’s investment environment as improving.
- Rising salary and wage expectations remains a top human resources challenge while difficulty training and developing other staff has emerged as a new top HR challenge for the oil, gas and energy industry in 2016.
- 34 percent of respondents report expectations to decrease headcount in 2016.
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This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.