Overall, AmCham China member companies in the Telecommunication Services industry are in-line with the general market outlook of foreign business in other sectors. Slightly over half of Telecommunication service providers report comparable earnings before interest and tax margins from 2014 to 2015. However, rising labor costs remains the top business challenge for the third consecutive year, with rising salary and wage expenses of particular concern.
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To read more about how Telecommunications Services companies do business in China, visit the AmCham China Business Center.
Despite these and other challenges, two-thirds of telecom service providers plan to increase headcount in China in 2016. Another area of concern is continued market access barriers and government policies that disadvantage foreign companies. In particular, foreign companies in this industry view technology and intellectual property as well as development and innovation as significant competitive advantages over domestic competitors.
Key Points of this Report:
- 0% of survey respondents in the ICT-services sector planned lower investment for 2016 than 2015 due to the expectation of slower growth in China or the existence of faster-growing markets in other geographies.
- Only 13 percent of respondents report losses in their company’s financial performance in China in 2015.
This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.