U.S. companies operating in China cited rising labor costs as the biggest risk to their business in the country for the first time, the 2013 China Business Climate Survey Report by the American Chamber of Commerce in China, AmCham China, showed.
Among 325 businesses surveyed, 47 percent said rising labor costs were their biggest risk, just above the number that said slowing economic growth in China was the major concern, the 2013 China Business Climate Survey Report said. More than a quarter of respondents said they had been the victim of data theft.
“As China enters a new period geared toward higher-quality GDP growth, our member companies are adjusting to structural shifts in the economy,” AmCham China Chairman Greg Gilligan wrote in the report. Shortages of employees and managers, as well as labor costs, had never before appeared among the top five concerns, the group said.