CEOs look to China for market expansion
Updated: 2012-03-16 07:37
By Hu Yuanyuan (China Daily)
|
|||||||||
The country remains an attractive proposition for business leaders
About 30 percent of global CEOs rank China as their top growth market this year.
That's because there is no sign of a pickup in the eurozone and US economies, PricewaterhouseCoopers LLP said in a report on Thursday.
"The Chinese economy may be slowing down, but the China story remains attractive and critical to global CEOs' growth strategies," said David Wu, PwC China Lead Partner for Beijing.
According to PwC's latest Annual Global CEO Survey, 63 percent of CEOs in Japan, 56 percent in Australia, 48 percent in the US and 45 percent in the Association of Southeast Asian Nations believe that China will play a critical role in their growth plans.
Although the central government has lowered China's growth target to 7.5 percent for 2012, the projection is still more than double the growth rate for the global economy.
China's rapidly increasing middle class - expected to account for 40 percent of the country's population by 2020 - will from a vast consumer market that is expected to drive the economy and provide business opportunities for multinational companies, according to PwC.
Meanwhile, Chinese CEOs are also expanding their businesses overseas.
According to the survey, 75 percent of businesses in China expect growth in their Southeast Asian and East Asian operations. That's followed by 66 percent expecting growth in Latin America, 57 percent in Australia and 51 percent in North America.
Moreover, the supply of talent could prove to be decisive for the growth prospects of Chinese companies.
According to the survey, more than half of Chinese respondents - far higher than the global average of 31 percent - say the talent crunch has prevented their businesses from innovating effectively.
To bolster their workforces, half of China's CEOs plan to expand their headcount by more than 5 percent this year. However, 59 percent say it's becoming increasingly difficult to hire in their industries. The difficulties are cutting across all sectors, and there is an acute shortage of senior and middle managers.
In response to the talent shortfall, Chinese CEOs are looking at alternative channels.
Two-thirds are investing in workforce development outside of their own companies to build a bigger base of potential employees, while 59 percent expect to source more workers globally, according to the report.
huyuanyuan@chinadaily.com.cn
- Relief reaches isolated village
- Rainfall poses new threats to quake-hit region
- Funerals begin for Boston bombing victims
- Quake takeaway from China's Air Force
- Obama celebrates young inventors at science fair
- Earth Day marked around the world
- Volunteer team helping students find sense of normalcy
- Ethnic groups quick to join rescue efforts
Most Viewed
Editor's Picks
Supplies pour into isolated villages |
All-out efforts to save lives |
American abroad |
Industry savior: Big boys' toys |
New commissioner
|
Liaoning: China's oceangoing giant |
Today's Top News
Health new priority for quake zone
Xi meets US top military officer
Japan's boats driven out of Diaoyu
China mulls online shopping legislation
Bird flu death toll rises to 22
Putin appoints new ambassador to China
Japanese ships blocked from Diaoyu Islands
Inspired by Guan, more Chinese pick up golf
US Weekly
Beyond Yao
|
Money power |