Overall, the Education industry is reporting few changes year-on-year in its revenue calculations, overall performance and EBIT (earnings before interest and tax) margins in China for 2016. Inconsistent or unclear laws and regulations and difficulty obtaining required licenses are reported as the top two business challenges, while industry overcapacity and bureaucracy have emerged as top business challenges. Significantly more Education industry respondents report having moved capacity outside of China in the past three years than the broader foreign business community, due largely to strategic prioritization of other countries.
Foreign companies in the Education industry report that they have a competitive advantage against domestic competitors in technology and intellectual property and development and innovation. However, industry respondents feel they have a strong disadvantage in their supply chain and logistics.
Key Points from this Report:
• Rising salary and wage expenses, and visa and immigration issues are the top two human resources challenges for education industry respondents.
• 80 percent of industry respondents plan to grow in their core business (e.g. with current products, services, customer segments).
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This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.
To read more about how Education companies do business in China, visit the AmCham China Business Center.