Overall, AmCham China members in the Telecommunication (TC) Hardware industry are in-line with the general market outlook of foreign business in other sectors. About half of industry respondents forecasted increases in the revenue of China operations for 2015 as compared to 2014.
The Telecommunication Hardware industry is optimistic about domestic growth but report strong levels of pessimism towards the regulatory environment in China for 2016. Challenges include rising labor costs, inconsistent or unclear laws and regulations and increasing Chinese protectionism. Nevertheless, only 14 percent of industry respondents reported planning to move capacity outside of China in the next three years. Almost two-thirds of Telecommunication Hardware companies plan to encourage innovation by establishing research and development centers.
Key Points of this Report:
- Telecommunication Hardware industry respondents view technology and intellectual property as well as development and innovation as areas in which foreign businesses enjoy competitive advantages over domestic Chinese competitors.
- 86 percent of industry respondents have not moved capacity outside of China in the past three years and are not planning to do so in the next three years.
- 36 percent of respondents view the quality of China’s investment environment as deteriorating.
This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.