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Majority of US firms report profits in China
(Xinhua)
Updated: 2005-09-21 11:26

Sixty-eight percent of American companies in China reported profitable or very profitable results last year. About 86 percent of the companies reported higher revenues over the previous year, according to a survey by the American Chamber of Commerce in China that included about 450 of its member companies.

The 2005 Business Climate Survey, included in the chamber's White Paper 2005, showed 93 percent of respondents reported China's reforms improved the climate for US businesses and 92 percent said their five-year business outlook was "optimistic" or "cautiously optimistic."

About 62 percent of the respondents said they serve the domestic market and another 11 percent are exporters to China.

The survey showed with high-speed economic growth, China has become not only a leading market in the world, but also a significant source of profits for foreign investors.

More than 450 of the top 500 multinational companies have business in China.

"What lures them is definitely profits," said Zhu Hengyuan, a professor of economics and management at Qinghua University.

China is the biggest profit source for Nokia, and its market is still growing faster than anywhere else. Nokia's net sales in China rose from 2.013 billion euros (US$2.45 billion) in 2003 to 2.66 billion euros last year. In the US, Nokia's sales fell from 4.475 billion euros in 2003 to 3.416 billion euros last year.

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