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On June 10th, China General Chamber of Commerce-USA (CGCC) and CGCC Foundation launched its 2019 Annual Business Survey Report on Chinese Enterprises in the United States in Washington, DC. The survey report launch focused on investment strategies and management and challenges related to Chinese investment in the U.S. About 400 American and Chinese executives from CGCC member companies, distinguished scholars and experts attended the event.
Peter Reisman, Co-Chair of the CGCC Government and Public Relations Committee, Managing Director and Chief Communications Officer at Bank of China USA, hosted the survey report launch. Mr. Steven Tan, Vice Chairman of CGCC, Chairman of CGCC-DC Chapter and President of China Telecom Americas, delivered welcome remarks, emphasizing that this is a crucial year for China-U.S. economic relations, which means empirical fact-finding, like this report, is more important than ever. According to Mr. Tan, the report puts into perspective the benefits and necessity of Chinese investments to the U.S. economy, and to the overall health of bilateral relations.
Evan Pan, Research Associate at China General Chamber of Commerce-USA, presented key findings of the survey report. He explained that this year's survey report focused on greenfield investment, localized business management, and gives readers unique access to Chinese executives' thinking and how they are striving for growth and solving business issues with many uncertainties.
Following the presentation, a panel discussion titled, “Chinese Investment in the U.S.: The Path Forward," provided unique insights along with best practices for both U.S. and Chinese businesses operating in the U.S. Craig Allen, President of the US-China Business Council, moderated the panel. The panelists included Elsie Pan, Director of Financial Services Advisory at PwC, Peter Cleveland, Deputy General Counsel at Intel Corporation, Justin Kocher, Senior Manager of Business Development, Asia, at JobsOhio, Jeff Liu, President of Fuyao Glass America, and Brian Connors, Executive Director of the Michigan-China Innovation Center. The panelists shared their thoughts with the audience regarding the survey report and experience with the U.S. market for Chinese companies. The panel covered various topics such as the effects of the trade war, corporate coping system, and trust building strategies between Chinese and U.S. companies. Panelists also discussed the recent U.S. policy environment and influences of trade tensions on their businesses. At the end of the panel, Mr. Allen concluded that, “From a macroeconomic standpoint, we should recognize that long-term Chinese foreign direct investment in our economy gives us greater resiliency, diversity and opportunity.”
Despite the increasingly combative tone and restrictive policies, CGCC members are generally committed to developing their business in the U.S. market and to improving the future of the U.S.- China business relationship. At the end of the survey report launch, Matt Bevin, Governor of Kentucky, delivered closing remarks through a special video message. “Our trading relationships have the ability not only to help our countries, but to help out entire regions of the world and of the world itself,” he emphasized. “This is the great opportunity before us, I thank you for being part of the discussion to figure out how we are going to seize this opportunity and make it everything that it has the potential to be.”
The Annual Business Survey Report has been conducted by CGCC for six consecutive years. In 2019, CGCC collaborated with PwC and jointly developed the business survey report. Facing the increasingly intense U.S.-China relations, relevant questions regarding the trade war and policy changes were added to the survey accordingly to gain updated insights of enterprises' responses and coping strategies. This year, more than 1000 questionnaires were distributed and 240 effective responses were collected. The survey findings were supplemented with in-depth interviews and commentary from eight CGCC Chinese member companies, enabling the report to tell success stories and share personal experiences alongside research findings.
The tension of trade relations between China and the U.S. continue to escalate. According to the survey report, respondents indicated that they have grappled with the complexity of the regulatory, tax and legal environment in the U.S. – which often experiences sweeping changes (such as the recent changes to tax policy and financial regulation). CGCC members have reported increasing their budget on compliance, including hiring third party professionals. Despite the increasingly combative tone and restrictive policies, the report found that CGCC members are generally committed to developing their businesses in the U.S. market and to improving the future of the U.S.- China business relationship. The U.S. remains a key investment target for Chinese companies, with 55% indicating that the U.S. market is a top three priority.
CGCC hopes that the results of this survey will help policymakers from both governments focus on the big picture and seek common ground, benefiting both the Chinese and U.S. business communities. CGCC and CGCC Foundation sincerely thanks all members and research participants for their time and support!
Click here to read this year's Annual Business Survey Report
Click here to view photos, video, and press coverage from the event
About CGCC
Founded in 2005, the China General Chamber of Commerce - USA (“CGCC”) has been recognized as the largest and most influential non-profit organization representing Chinese enterprises in the U.S. Its membership consists of more than 1,500 Chinese and U.S. companies, 54 of which are ranked on the 2018 Fortune Global 500. CGCC's mission is to create value, generate economic growth, and enhance cooperation between the U.S. and Chinese business communities. CGCC conducts extensive research and provides a broad range of programs, services, and resources to its members and key stakeholders in an effort to foster the mutual understanding, trust, and engagement between China and the U.S. As of 2018, CGCC’s Chinese member companies have cumulatively invested over $120 billion, employ more than 200,000 people, and support over one million jobs throughout the United States.
CGCC is a national organization and includes CGCC-New York (CGCCUSA-HQ), CGCC-Chicago, CGCC-Houston, CGCC-Los Angeles, CGCC-San Francisco and CGCC-Washington D.C.
About CGCC Foundation
Established in 2014, CGCC Foundation is a 501(c)(3) tax-exempt organization. The mission of CGCC Foundation is to deepen mutual understanding and cooperation between the United States and China through research, public charity and engagement in economic, cultural and social exchanges.