China still key factory base amid downturn
Multinational companies are still expanding operations in China despite the global downturn, but they are hurting from plunging exports and local sales, according to a report issued Friday.
The annual report on manufacturing competitiveness, issued by the American Chamber of Commerce in Shanghai and other foreign business groups, found that most companies surveyed see their China operations as vital for weathering current hard times.
But like manufacturers everywhere, they are suffering.
A survey in late December, which followed up on a broader study conducted in the early autumn, found that nearly half of 79 foreign companies responding suffered export declines of more than 10 percent in the October-December quarter. More than 40 percent saw sales in China drop more than 10 percent, according to a Feb. 20 AP report.