Washington, D.C. (Feb. 25, 2013) – Nearly three-quarters of Chinese business leaders surveyed in the United States believe entering the U.S. market is challenging, according to a joint survey released today by China Daily USA and APCO Worldwide.
More than 90 percent of business executives agreed that overcoming cultural differences was a challenge for their company, and nearly half of the respondents, 45 percent, identified the cultural barrier as a “major” challenge.
Despite challenges, 94 percent of business leaders surveyed describe their company’s experience entering the United States as somewhat or very successful.
“China Daily is pleased to partner with APCO on this survey to better understand how Chinese companies in the US have fared,” said Larry Lee, China Daily USA president and editor-in-chief. “As more Chinese companies go global and come to the United States, they add a dimension to the close economic and trade relationship between the world’s two largest economies. China Daily has made coverage of Chinese companies in the US a top priority. We hope our news stories and the survey can help to foster understanding among the American public about Chinese direct investment.”
“We are pleased to partner with China Daily USA to conduct this survey with a view to sharing insights and experiences of Chinese enterprises in the U.S. market,” said Margery Kraus, CEO and founder of APCO Worldwide. “APCO has helped Chinese enterprises successfully expand into the United States and U.S. companies expand into China since we began operating in China more than 20 years ago. Understanding the nuances, knowing how business is conducted both markets, understanding who the key stakeholders are for success and having experienced professionals in both markets are all essential to success. This is what we bring to our clients.”
The survey was conducted to better understand the challenges and successes of Chinese companies in the United States. The sample group contained 51 senior business executives (managing directors, vice presidents, senior vice presidents, presidents and CEOs) representing 46 Chinese enterprises with at least 10 employees in the United States and with company headquarters based in China. The companies surveyed represent a broad cross section in terms of industry, geography and years of operation in the United States.
The survey also notes that Chinese enterprises have a positive outlook for the future of their companies, and are overwhelmingly optimistic that the U.S. economy will recover and expand over the next several years. The business leaders almost uniformly expect their companies to continue to grow as a result of improving economic conditions.
The survey identifies the importance of local expertise in helping Chinese enterprises understand the regulatory framework, cultural differences and the key stakeholders with whom to build relationships to achieve success.
Other notable findings of the survey include:
- 91 percent described their experience building their brand and reputation in the United States as successful
- 84 percent cited competition from existing U.S. firms as a challenge
- 61 percent said it is easy to conduct their day-to-day operations in the United States
- 86 percent identified high operating costs as a challenge
- 92 percent shared a positive outlook for the future of their company
“We hope that this survey will help counter some misperceptions about Chinese investment in the United States,” said Kenneth Jarrett, APCO’s chairman for Greater China and former U.S. Consul General in Shanghai. “Ultimately, we believe the story of Chinese investment is much more nuanced. The purpose of this survey is to build more awareness of the on-the-ground realities of Chinese enterprises in the United States, and to provide insight on what it takes for a Chinese enterprise to succeed in the United States.”
To see the full study, click here.
About China Daily USA:
China Daily USA is the US edition of China Daily, the national and largest English-language newspaper in China. Launched in 2009 and published Monday to Friday, China Daily USA keeps North American readers current on developments in one of the world’s fastest-growing economies and facilitates constructive dialogue between China, the U.S. and the world at large. The paper is now printed in nine U.S. cities (New York, Washington D.C., San Francisco, Los Angeles, Chicago, Houston, Seattle, Atlanta and Boston) and is available on various digital devices. For more information and to read stories about China, please go to www.chinadailyusa.com.
About APCO Worldwide:
Founded in 1984, APCO Worldwide is an award-winning, independently owned global communication, stakeholder engagement and business strategy firm with offices in major cities throughout the Americas, Europe, the Middle East, Africa and Asia. Headquartered in Washington, D.C., APCO clients include corporations and governments; industry associations and nonprofit organizations; and six of the top 10 companies on the Fortune 500. APCO offers services related to business, industry and finance; media, public opinion and society; and government and public policy. The firm is a majority women-owned business.