According to a survey by the Confederation of Indian Industry and Evalueserve, Shanghai is the most popular destination for Indian companies in China. 72% have invested in Shanghai. Beijing and the provinces of Jiangsu and Guangdong are other popular destinations in China. Majority of the companies, 26 of which have current businesses in the US, shook off the trade friction between China and the US in relation to the impact it has on their business.
The survey took into consideration the investment and operation conditions of 57 Indian companies doing business in China particular the period of January to April 2019. The companies are not as bothered as they are assumed to be amidst economic tension between the USA and China, instead, they are positively showing optimism and confidence in the economy.
Reports reveal that 50% of respondent companies in the IT and BPO industry are planning to make additional investments this year. About 67% of the respondents said that their business was very profitable or profitable in 2018 compared to their numbers back in 2017. Majority of the companies shared that key factors include quality, efficiency, brand awareness and product innovation. Meanwhile, external challenges include rising labor cost and stricter regulations, citing emphasis on finding and retaining talent.
30% of the surveyed companies were reported to have generated revenues higher than 100 million yuan in 2018, while the rest had theirs not less than what they earned in the previous year.
It is also highlighted in the survey that half of the companies said China’s innovation is more favorable than the worldwide average, citing that Chinese firms are found to be more innovative in commodities.
Indeed, the survey is an attempt to continuously gauge the performance of Indian companies. In doing so, China will be able to understand the challenges they face and help Indian companies and CEOs prioritize their resource allocation, confirms Kamal Dhuper, chairman of CII India Business forum China and president of NIIT (China) Ltd.
The results established the growing and deep economic relationship between India and China as Indian companies continue to have relevant growth plans for the Chinese market now and in the years to come.