Australia Business Perceptions in China 2013

Australia-China Business
Perceptions Survey
December 2013
Table of contents
Executive summary .................................................................................................................................... 3
From AustCham Greater China .................................................................................................................. 4
Australian-owned companies in China........................................................................................................ 5
Survey findings........................................................................................................................................... 7
Profile of respondents .............................................................................................................................. 12
Survey methodology................................................................................................................................. 14
Appendix .................................................................................................................................................. 15
December 2013
Australian Trade Commission Australian Businesses in China 2
Executive summary
Overview
This survey gathers information on Australian companies operating in mainland China, Hong Kong and Macau. It
focuses on mainland China operations and on Australian services companies. It is the second survey of its kind,
following the 2012 China Business Perceptions survey.
The survey aims to better understand the growth outlook of these companies, any barriers to their growth, as well as
the regulatory and competitive landscape in which they operate. It also aims to highlight differences between different
regions of mainland China.
It captures the outlook for companies that identify themselves as primarily Australian and operate in China. The
results are based on a sample of 86 members of AustCham Greater China chambers in Shanghai, Beijing, South
China, West China and Hong Kong. The surveys were completed from October 22 to November 17, 2013.
The results highlight the opportunities and challenges Australian foreign subsidiaries face in China and provide a
sense of how Australian businesses are leveraging the strong trade relationship between Australia and China to grow
their businesses.
Key findings
Respondents had a positive outlook for the mainland Chinese economy in the next 12 months, with more than
eight out of 10 optimistic about the overall outlook. This is an improvement on the response from 2012, when
seven out of 10 were optimistic.
Four in five respondents indicated the level of competition had increased over the last 12 months. In
comparison, only three in four companies in the 2012 survey reported an increased level of competition. Of
the 24 respondents with operations in Western China, 23 indicated increased competitiveness in the
mainland China market.
Competitors of Australian companies were nearly evenly split between local Chinese companies and other
foreign-owned companies, with 56 per cent and 53 per cent of respondents respectively indicating this as
their main competition.
Respondents indicated they were more profitable in 2013 than in 2012.
Key obstacles to growth for respondents with operations in mainland China were the availability of skilled staff,
lack of transparency in organisational practices and an unclear regulatory environment.
Most respondents expected their operations to grow in the next five years. Three in four indicated they were
likely to expand and two-thirds of these said they would expand in the next two years.
Access to new customers was the most frequently indicated reason for expansion. Of all respondents who
planned to expand, 56 per cent indicated this as a reason for expansion. For those expanding to Western
China, 76 per cent stated this as the reason.
December 2013
From AustCham Greater China
This AustCham/Austrade survey of Australian business sentiment in China has been a unique opportunity to focus in
on the issues confronting Australian businesses in this extremely busy and noisy market. A feature of the Australian
business community is its sense of cooperation and collaboration. So to have this snapshot, which is specifically
enquiring of our Australian perceptions in China, presents a valuable insight into how we as a business community
view the current market conditions and where we might be heading.
This survey also provides an opportunity for a reality check. So much is written and spoken about the Chinese
economy and its impact on Australia, yet often these are observations that are made a long way from the day to day
realities of operating in China. Regrettably, often these observations are not helpful because they are based on a
misreading of the China market. The AustCham business community in Greater China is ideally placed to observe
how business for Australian companies is tracking in the current economic environment.
The findings from this second AustCham/Austrade business sentiment survey are most interesting. They are
particularly notable for the growth in the optimistic outlook expressed by the respondents. Last year we thought that it
was remarkable that 69 per cent of the respondents had an optimistic outlook for the coming year. That sentiment has
become even more pronounced in the 2013 survey with 83 per cent saying that they had an optimistic view of the
coming year's business in China.
That was significant also because 85 per cent said that they are expecting the level of competition to grow over the
coming year. The competitors were expected to be an even mix of Chinese and international companies, yet the
positive outlook was based on the prediction that they expect to see the market to continue to grow in China. In fact,
of the 77 per cent of respondents who said that they expected their businesses to grow in size over the next five years,
half of these said that the growth would be required to meet increasing demand in the China market.
This positive business sentiment may not reflect the tone expressed among commentators in Australia as they look at
China and the global economy. Yet this year's findings have reinforced the views delivered in the study last year.
AustCham Greater China, comprising the AustChams of Beijing, Shanghai, South China and West China in the
mainland and AustCham Hong Kong & Macau have a rare ability to tap into the real-time sentiment of doing business
in China. Perhaps it says something of those Australians who are engaged on the ground here in China that they
have such an overwhelming positive outlook for the next few years.
December 2013
Australian-owned companies in China

This section provides background on the survey, Australias trade relationship with China and Australian businesses
operating in China.
China is Australias largest trading partner, accounting for 20 per cent (A$125.2 billion) of bilateral trade and 26 per
cent (A$78.9 billion) of exports in 2012. Australias trade with China has grown rapidly, with five-year growth of 17 per
1
cent year on year to 2012. The number of companies located in Australia exporting to China is also growing.
The number of Australian companies with a physical presence in China is difficult to measure. However, both the
number of Australian-owned subsidiaries located in China and the number of projects in China receiving foreign direct
investment (FDI) from Australian companies seem small compared to the large and rapid growth in the value of trade.
Australian companies operating in China
Of Australia's top 2000 companies, 98 (5 per cent) owned a significant stake of at least one company in China as of
August 2013 and 89 had at least one majority owned subsidiary in China.
These 98 Australian parent companies had a combined total of 193 China-based subsidiaries and an equity share of
greater than 10 per cent in a further 28 companies, for a total of 221 companies. This total does not include
representative offices, the inclusion of which may show a higher presence of large Australian companies in China.
Of the 221 Australian-owned companies in China, 55 per cent are primarily services companies, 42 per cent are
2
primarily manufactured goods companies and 3 per cent are primarily agriculture or mining companies.
There are another 328 Hong Kong or Macau based subsidiaries and associated companies of Australia top-2000
companies. Altogether there are 549 China, Hong Kong and Macau based companies, owned by a total of 171
Australian companies (9 per cent of the top 2000).
These top 2000 companies have reported annual revenues ranging from A$56 million to A$58 billion. Data is limited
on the number of small and medium Australian companies with operations in mainland China, so it is difficult to
assess the population of Australian companies which operate in China.
In terms of recent investments, 51 companies from Australia invested, through foreign direct investment (FDI), in a
total of 79 projects across Mainland China between January 2008 and September 2013. The total capital investment
3
was US$6.5 billion, with an average investment of US$82 million per project.
Companies exporting from Australia to China

The number of Australian businesses exporting goods to China from Australia has grown over the last five years, as
has the value of exported products overall.
The value of goods exports has grown much faster than the number of companies. Much of the growth in value is
driven by exports of minerals and fuels, which accounted for around 70 per cent of Australian goods exports to China
in 2012. These exports originate primarily from a small number of large companies. At the other end of the spectrum,
many of the Australian businesses exporting to China are small traders.
Department of Foreign Affairs and Trade, Composition of Trade 2012

IBIS World Company database as of 28 November 2013
3
FDImarkets.com (2013) Trend Report: Australia FDI to China
2
December 2013
Figure 1. Number of businesses exporting goods to

China from Australia ('000's)
4.3
4.5
4.8
5.0
5.3
Figure 2. Goods exports value (A$ billion)
5.5
76.8
64.9
46.5
39.3
22.8
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
27.0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Based on ABS catalogue 5368.0.55.006 Characteristics of Australian Exporters 2011-12
The value of exports of services companies has also grown and was A$5.7 billion in 2012. This was concentrated in
travel of A$5.1 billion dollars, with A$4.0 billion of this travel education-related. Transport and professional and
technical services are the next largest categories of services exports, with A$240 million of transport services
exported in 2012 and A$135 million of professional and technical services.
Figure 3. Service exports value (A$ billion)
5.2
5.7
5.7
2011
2012
4.7
4.0
3.4
2007
2008
2009
2010
Based on ABS catalogue 5368.0.55.003 International Trade in Services by Country, by State and by Detailed Services Category, Calendar Year
December 2013
Survey findings
Figure 5. Change in level of competition in mainland
China in the last 12 months (percentage of respondents)
Economic outlook
Respondents had a positive outlook for the Chinese
economy over the next 12 months, with 83 per cent
either optimistic or slightly optimistic about the overall
outlook. This is an improvement on the response from
2012, when only 69 per cent were optimistic.
Increased a great deal
15
21
Increased slightly
Stayed about the same
24
Decreased slightly
Figure 4. Outlook for the Chinese economy (percentage

of respondents)
9
9
3
27
69
Neutral
83
Slightly optimistic
31
38
2012
2013
Optimistic
What is your overall view on the outlook for the mainland Chinese
economy in the next 12 months?
Base: All respondents with location in mainland China, n=82 (2012:

n=96)
Services companies were slightly more optimistic than

manufacturing companies, with 84 per cent and 75 per
cent respectively indicating an optimistic outlook for
the Chinese economy.
Decreased moderately
40
85%
Slightly pessimistic
45
38
Pessimistic
Increased moderately
Decreased a great deal
said competition had increased in

mainland China
How has the level of competition within mainland China changed in

the last 12 months?
Base: All respondents with location in mainland China, n=82
Potentially a result of a more mature market, only 57

per cent of surveyed companies operating in Hong
Kong or Macau indicated an increase in the level of
competition, but 43 per cent indicated it had remained
the same.
Figure 6. Change in level of competition in Hong Kong
and Macau in the last 12 months (percentage of
respondents)
Increased a great deal
13
Increased moderately
Increased slightly
Competition
43
27
Decreased slightly
A dampener for the Australian businesses on the

positive outlook for the Chinese economy was a
perceived increase in the level of competition from
other companies.
In terms of competition, 85 per cent of respondents
indicated this had increased over the last 12 months.
In comparison, only 72 per cent in the 2012 survey
reported an increased level of competition.
Stayed about the same
17
Decreased moderately
Decreased a great deal
57%
said competition had increased in

Hong Kong/Macau
How has the level of competition within Hong Kong and Macau
changed in the last 12 months?
Base: All respondents with location in Hong Kong or Macau, n=30
Of the 24 respondents with operations in Western

China, 23 (96 per cent) indicated increased
competition in the mainland China market. This may
reflect increasing competitiveness in the West.
In contrast, only four of the 12 surveyed member
companies of the Beijing chamber reported an
increase in competition.
December 2013
Competition to Australian companies was nearly

evenly split between local Chinese companies and
other foreign-owned companies, with 56 per cent and
53 per cent of respondents indicating these as key
competitors, respectively.
In line with their positive outlook for the Chinese

economy, respondents also have an optimistic outlook
for their own organisation. 80 per cent are either
optimistic or slightly optimistic while one year ago
optimism was significantly lower, at 63 per cent.
Figure 7. Location of key competitors

(percentage of respondents)
Reasons for optimism
Mainland China (local)
56
Mainland China (foreignowned)
53
Australia
Strong business pipeline; strong new client

acquisition; increasing interest in China from our major
Australian clients.
(Board Director of a financial service provider)
36
Hong Kong / Macau
29
Great potential market development needs for our

industry.
High income Asia
28
(Marketing Manager of a consulting service provider)
Europe or North America
26
New Zealand
Other Asia
An upturn in new business and relatively stable and

solid connections already established with business
partners
9
5
(Board Director of a construction company)
Where are your main competitors based?
Base: All respondents, n=86
Local companies in Hong Kong / Macau were the main

competitors in these markets (57 per cent) followed by
foreign-owned companies in Hong Kong / Macau (53
per cent) and local companies in mainland China (50
per cent).
Outlook for Australian companies
Figure 8. Organisational outlook
2 10
7
13
24
Pessimistic
Slightly pessimistic
43
32
63
Neutral
80
Slightly optimistic
31
37
2012
2013
Optimistic
Figure 9. Reasons for optimism

Growth potential
46
Enter new markets
14
Strong demand
12
Continued investment
12
Relationships with clients
12
Increasing wealth
11
Less restrictive policies
Market is stable
Competitive market
Stable economy
Have increased our staff
Low operating costs
You have indicated that the outlook for your organisation in

mainland China optimistic / slightly optimistic. What are the reasons
for your view?
Base: All respondents with optimistic outlook for their economy,

n=65
What is your overall view on the outlook for your organisation in

mainland China in the next 12 months?

n=96)
December 2013
Profitability
More than half of the respondents indicated 2013 was
more profitable than 2012. This has similarities with
last years result, when around half reported 2012 as
more profitable than 2011.
Figure 10. Financial performance compared to last year
Of the 24 companies operating in Western China, 23

indicated the quality of their product or service as their
main competitive advantage.
Compared with service companies, manufacturers
indicated client relationships were a competitive
advantage less frequently (43 per cent) and low prices
more frequently (36 per cent).
Challenges
15
1 13
33
33
Much less
profitable
Less profitable
About the same
51
40
43
More profitable
11
10
2012
2013
Much more
profitable
53
How would you rate your organisations financial performance in

mainland China this year compared to last year?

n=96)
Competitive advantages
The top three competitive advantages indicated were
quality of the product or service, client relationships
and the range of their offering.
Figure 11. Competitive advantages
Quality of product or service
70
Client relationships
62
Range of offering
46
Innovation
38
Company size / profile
27
Alliance with local partners
23
Expansion into new regions
21
Price competitiveness
20
Availability of supply
Government relationships
17
9
What are the key competitive advantages for your organisation in

mainland China?
Key obstacles impacting respondents operations in

mainland China were the availability of skilled staff,
lack of transparency in organisational practices and an
unclear regulatory environment.
Figure 12. Obstacles to growth (extremely high / high
impact, percentage of respondents)
Availability of skilled labour
32
Lack of transparency in
organisational practices
32
Unclear regulatory environment
32
Cost pressures other than

wages
29
Exchange rate fluctuations
28
Difficulty obtaining required

licences to do business
28
Ability to enforce contract terms
28
27
Wage pressures
Difficulty obtaining work permits
24
Trade restrictions
24
23
Cultural differences
Competitors with preferential
tariffs
22
International trade restriction
21
Restrictions on repatriation of
profit
21
Property ownership
18
Lack of protection of intellectual

property rights
18
17
Access to / cost of finance

Infrastructure issues
Transportation of goods,
supplies and inputs
72%
13
11
indicated at least one obstacle to

growth
Please indicate the level of impact that the following obstacles have
on your organisations operations in mainland China?
December 2013
However, for organisations operating in Western China,

the two most significant obstacles were the unclear
regularity environment (19 per cent) and cultural
differences (17 per cent):
Figure 14. Timing for growth

6
It is a lot harder market to crack than anticipated.
Local nuances are difficult to cater for. Unless you are
a massive foreign company it is very difficult to make
an impact
30
Next 3 years
17
Next 4-5 years
(CEO of a mining company)
Cultural differences were the main obstacle cited by

goods manufacturers:
Once you think you have figured it out - you realise
that you only know very little about something
(Region Manager of a manufacturing company)
Of those who did not indicate any high impact barriers

to growth, some saw opportunity:
These are not obstacles per se, just issues which
affect our operations. Managing these factors well is a
key competence which enables us to be competitive.
(CEO of a service provider)
Growth
In what timeframe is your organisation likely to expand or grow its

physical presence?
Base: All respondents who are likely to expand in the next 5 years
(excl. dont know), n=59
The most frequently indicated locations for expansion

were Beijing, Shanghai and Guangdong. 32 per cent
of respondents planned to expand in Western China.
Of these, half were not currently located in Western
China but planned a new operation.
Figure 15. Regions where expansion was planned
Beijing
Expansion plans
Guangdong
In line with their positive outlook for their organisation

in mainland China, 77 per cent indicated their
organisation was likely to expand.
Hong Kong
26
15
Likely to expand
Remain the same
42
77%
Likely to reduce
Don't know
of companies were likely to expand
What are your expectations for growth of your organisations

operations in mainland China, over the next five years?
Of those planning to expand, 30 per cent plan to do so

within the next financial year and another 36 per cent
in the next two years. The remaining 34 per cent will
either expand in the next three to five years or are not
sure yet.
December 2013
17
39
30
14
27
Chongqing
17
Sichuan
11
Zhejiang
14
12
New location
Very likely to expand
35
Dont know/not sure
36
Shanghai
Figure 13. Growth expectations

Within the next

financial year
Next 2 years
11
Jiangsu 3
Liaoning
Total expansion
6
6
In which region(s) is your organisation likely to expand existing

operations or open new offices / plants?
Base: All respondents who are likely to expand in the next 5 years,
n=66; Many respondents selected multiple regions, regions with less
than 5 per cent of mentions are not shown.
Drivers of expansion
The most frequently indicated drivers for planning to
extend operations were access to customers (53 per
cent) and expanding capacity to meet demand (47 per
cent). Those planning to expand into Western China
indicated access to customers as the primary reason
for expansion (76 per cent).
Figure 16. Reasons for expansion

Access to customers in these
locations
Expanding capacity to meet
demand
53
47
Figure 18. Location for manufacturing

(number of respondents)
20
Chinese partners
20
Reducing operating costs
Mainland China
Developing new technologies

and products
12
20
Europe / North America
12
18
Other high income Asia
Access to suppliers
11
Other Country
New Zealand
12
Preferential tax rates
16
Other Asia
17
Favourable regulatory changes
Hong Kong / Macau
7
2
Where does your organisation conduct each of the following

operations?
Base: All respondents manufacturing in at least one region, n=22
Which three of the following factors most influenced your

organisations decision to expand or grow?
Base: All respondents likely to expand in the next 5 years, n=66
Manufacturers indicated reducing operating costs (40

per cent) and gaining access to suppliers (15 per cent)
as reasons more frequently than services providers.
The 15 companies not planning to extend their
business in the next five years mainly attribute this to
high operating costs (n=7) or pressures from strong
competition (n=7).
Location of operations
R&D was conducted primarily in Australia and
mainland China, followed by Europe / North America.
18
Australia
18
14
Other Asia
8
7
New Zealand
Figure 19. Location for sourcing material

Mainland China
Australia
Other Asia
Other Country
Hong Kong / Macau
New Zealand
Base: All respondents manufacturing in mainland China and

sourcing material in at least one region, n=8
Mainland China
Other Country
Those manufacturing in mainland China were slightly

more likely to source raw materials from China than
from Australia.

operations?
Figure 17. Location for R&D operations

Hong Kong / Macau
18
Australia
Reducing risk
operations
24
Access to skilled staff

Access to customers in other
markets outside China
More efficient transport /

logistics
Product suppliers were likely to manufacture both in

Australia and in China. A number of companies
manufactured in a range of locations globally.
6
5
4
Service providers who operated in mainland China

tended to have either a regional focus or a global
focus. 56 per cent provided services within China,
Australia and Hong Kong only. Another 13 per cent
also provided services in these regions plus another
main regional group, most frequently other high
income Asian countries. The remaining 30 per cent
had a presence in multiple regions and continents.

operations?
Base: All respondents conducting R&D in at least one region, n=23
December 2013
Profile of respondents
Figure 21. Duration of presence

Revenue
Of the 86 respondents to the survey, 57 were based in
mainland China. Around half had revenues in
mainland China of over A$5 million, and half under
A$5 million.
Figure 20. Revenue in mainland China
($A, percentage of respondents)
Less than $1 million
$20 million to $100

million
More than $100 million
25
2 - 5 years
18
21
6 - 10 years
23
$1 million to $5 million
$5 million to $20 million
9
7
One year or
less
25
14
14
11 - 15 years
16 - 20 years
11
21
Hong Kong /
Macau
6
18
18
Over 20 years
18
Mainland
China
21
32
How long has your organisation had a physical presence in mainland

China / Hong Kong/Macau?
Base: All respondents with location in mainland China (excl. dont

know), n=80; All respondents with location in Hong Kong / Macau
(excl. dont know), n=28
Please indicate your organisations revenue in mainland China (in

Australian dollars)?
Base: All members of the Shanghai, Beijing, West China or South

China chambers (excl. dont know / prefer not to say), n=57
The majority of employees (77 per cent) were local

Chinese, and 18 per cent were Australian.
Employees and length of establishment
Figure 22. Employees by nationality

The respondents located in Hong Kong / Macau

employed fewer people than their mainland
counterparts. However, they have been operating for a
longer period and generated more revenue than those
located in mainland China. The median company size
in Hong Kong / Macau is 25 employees, while in
mainland China it is 50 employees. Half (50 per cent)
of the organisations in Hong Kong / Macau have had a
presence for more than 16 years, while only 24 per
cent of mainland Chinese locations have existed for a
similar period of time.
Local Chinese
77
Australian
Other
18
6
And what proportion of your organisations full-time employees in

mainland China, Hong Kong and Macau are?
Base: All respondents (excl. dont know / prefer not to say), n=73
This difference can be partly explained by historical

factors. Until the mid-2000s there were significant
advantages for companies based in Hong Kong,
particularly regarding the regulatory environment.
Since then for many industries this gap has been
closing.
December 2013
Location
Industry
Almost all respondents operated in mainland China

(95 per cent), most commonly in Shanghai,
Guangdong and Beijing. A third (35 per cent) operated
in Hong Kong / Macau.
A majority of respondents (86 per cent) provided

services and one-third (33 per cent) provided
manufactured products. The overlap indicates that 19
per cent of respondents provide both products and
services. No producers of agricultural or mining
products responded.
Figure 23. Location and headquarters

Shanghai
Guangdong
Beijing
Hong Kong
Chongqing
Jiangsu
Sichuan
Fujian
Tianjin
Zhejiang
Guangxi
Jiangxi
Shandong
Macau
Guizhou
Hunan
Yunnan
Hainan
Shaanxi
Shanxi
Hebei
Hubei
Jilin
Anhui
Gansu
Heilongjiang
Henan
Inner Mongolia
Liaoning
Xinjiang
Qinghai
Australia
Singapore
Other
36
23
10
12
15
13
13
12
1
10
10
8
8
8
8
7
7
7
5
5
5
3
3
3
2
2
2
2
2
2
2
1
13
1
2
62
51
47
Compared to the China-based operations of the top

2000 Australian companies, the proportion of services
companies in our survey is much higher. This may be
correlated with the relatively smaller business size of
the respondents. It also reflects AustChams
membership.
35
In which provinces/cities does your

offices/operations?
Where is your organisation headquartered?
This is similar to the profile of respondents in 2012,

where 89 per cent provided services and 42 per cent
manufacturing products.
Figure 24. Products or services provided

Architect. / engineering /
technical services
20
16
Education and training

Financial and insurance
services
Elaborately transformed
manufactures
Headquarters
12
Construction services
10
Manufacturing services
10
Advertising, comm. and PR

services
Business and
administrative support
Management and
consulting services
Location
Product design / R&D
organisation
15
have
More than half of the organisations in the survey were

wholly foreign-owned enterprises (57 per cent), 22 per
cent were branch offices, 10 per cent were joint
ventures and 5 per cent were holding companies.
Simply transformed
manufactures
Health care and social
assistance services
Information media and
telecommunications
Legal and accounting
services
Rental, hiring and real
estate services
86% Services
9
9
9
6
5
5
5
Services
5
Products
33% Products
Which of these describes the products or services your organisation

provides?
Base: All respondents, n=86, Products and services with less than
5per cent mentions are not shown
December 2013
Survey methodology
Sample
This survey captures the outlook for companies that
identify themselves as primarily Australian and operate
in China. The results are based on a sample of 86
members of AustCham Greater China chambers in
Shanghai, Beijing, South China, West China and Hong
Kong. The surveys were completed from October 22 to
November 17, 2013.
We chose to allow companies with memberships at
multiple chambers to provide more than one response,
especially as a number of Australian companies have
subsidiaries in different locations.
We also wanted to capture any differences in
sentiment based on geographic location. As a result,
the number of companies in the sample may be
slightly smaller than 86.
As outlined in the previous section, there are around
100 top 2000 Australian companies who own
subsidiaries in China, and 51 Australian companies
with recent direct investment in China. There are also
companies with a representative office rather than a
subsidiary, and many small and medium Australian
companies with a presence in China.
Based on our sample, the survey is a useful general
indication of the operating environment in China for
Australian companies.
In all, 1,420 members of AustCham Greater China

were invited to take part in the survey. This resulted in
155 completed surveys and generated an 11 per cent
response rate. However, only responses from
Australian companies have been considered for the
analysis.
Overall 55 per cent of the 155 surveyed companies
have been identified as Australian which resulted in an
overall sample size of n=86. The response rates and
the proportion of Australian companies among the
respondents vary strongly for each Chamber and are
shown in the table below.
Figure 25. Survey response rate
Contacts
emailed
Chamber
Completed
surveys
(Response
Rate)
Shanghai
364
Beijing
246
West
China
10
South
China
100
Hong Kong
700
TOTAL
1,420
Australian
companies
(Proportion)
46
26
(13%)
(57%)
20
12
(8%)
(60%)
(60%)
(100%)
49
27
(49%)
(55%)
34
15
(5%)
(44%)
155
86
(11 %)
(55 %)
Methodology
Respondents completed an online survey programmed
and hosted by Sweeney Research. The average
survey length was 14 minutes. The surveys were
completed from October 22 to November 17, 2013.
Sweeney supplied the Beijing, Hong Kong and South
China Chambers with an ID and unique link for each
member who was then emailed an invitation to
participate in the survey.
The process ensured anonymity and confidentiality of
responses. Due to technical difficulties in the email
send process for AustCham Beijing, Sweeney
Research assumed responsibility for the mail sends for
AustCham Beijing members. Furthermore, Sweeney
Research organised the email send out process on
behalf of AustCham Shanghai and West China.
December 2013
The response was similar to last year. In 2012, 1,003

members of the Beijing, Hong Kong, Shanghai and
South China Chambers were invited to participate in
the survey.
Overall, 15 per cent responded to the survey (n=153)
of which 63 per cent were Australian companies. The
total number of completed surveys by Australian
companies in 2012, n=96, forms the base for
comparisons to 2012 in this report.
No weighting has been used in the analysis.
Appendix
Figures
Figure 1. Number of businesses exporting goods to China from Australia ......................................................................... 6
Figure 2. Goods exports value ............................................................................................................................................. 6
Figure 3. Service exports value ........................................................................................................................................... 6
Figure 4. Outlook for the Chinese economy ........................................................................................................................ 7
Figure 5. Change in level of competition in mainland China in the last 12 months ............................................................. 7
Figure 6. Change in level of competition in Hong Kong and Macau in the last 12 months ................................................. 7
Figure 7. Location of key competitors .................................................................................................................................. 8
Figure 8. Organisational outlook .......................................................................................................................................... 8
Figure 9. Reasons for optimism ........................................................................................................................................... 8
Figure 10. Financial performance compared to last year .................................................................................................... 9
Figure 11. Competitive advantages ..................................................................................................................................... 9
Figure 12. Obstacles to growth ............................................................................................................................................ 9
Figure 13. Growth expectations ......................................................................................................................................... 10
Figure 14. Timing for growth .............................................................................................................................................. 10
Figure 15. Regions where expansion is planned ............................................................................................................... 10
Figure 16. Reasons for expansion ..................................................................................................................................... 11
Figure 17. Location for R&D operations ............................................................................................................................ 11
Figure 18. Location for manufacturing operations ............................................................................................................. 11
Figure 19. Location for sourcing material .......................................................................................................................... 11
Figure 20. Revenue in mainland China ............................................................................................................................. 12
Figure 21. Duration of presence ........................................................................................................................................ 12
Figure 22. Employees by nationality .................................................................................................................................. 12
Figure 23. Location and headquarters ............................................................................................................................... 13
Figure 24. Products or services provided .......................................................................................................................... 13
Figure 25. Survey response rate ....................................................................................................................................... 14
December 2013
December 2013

Australia Business Perceptions in China 2013

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Australia Business Perceptions in China 2013

Загружено:

Авторское право:

Доступные форматы

Australia-China Business

Australian Trade Commission Australian Businesses in China 2

Respondents indicated they were more profitable in 2013 than in 2012.

Australian Trade Commission Australian Businesses in China 3

From AustCham Greater China

Australian Trade Commission Australian Businesses in China 4

Australian-owned companies in China

Companies exporting from Australia to China

Department of Foreign Affairs and Trade, Composition of Trade 2012

Australian Trade Commission Australian Businesses in China 5

Figure 1. Number of businesses exporting goods to

Figure 2. Goods exports value (A$ billion)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Based on ABS catalogue 5368.0.55.006 Characteristics of Australian Exporters 2011-12

Australian Trade Commission Australian Businesses in China 6

Increased a great deal

Figure 4. Outlook for the Chinese economy (percentage

Base: All respondents with location in mainland China, n=82 (2012:

Services companies were slightly more optimistic than

Decreased a great deal

said competition had increased in

How has the level of competition within mainland China changed in

Base: All respondents with location in mainland China, n=82

Potentially a result of a more mature market, only 57

A dampener for the Australian businesses on the

Stayed about the same

said competition had increased in

Base: All respondents with location in Hong Kong or Macau, n=30

Of the 24 respondents with operations in Western

Australian Trade Commission Australian Businesses in China 7

Competition to Australian companies was nearly

In line with their positive outlook for the Chinese

Figure 7. Location of key competitors

Reasons for optimism

Mainland China (local)

Mainland China (foreignowned)

Strong business pipeline; strong new client

Hong Kong / Macau

Great potential market development needs for our

High income Asia

(Marketing Manager of a consulting service provider)

Europe or North America

An upturn in new business and relatively stable and

(Board Director of a construction company)

Where are your main competitors based?

Base: All respondents, n=86

Local companies in Hong Kong / Macau were the main

Figure 9. Reasons for optimism

Enter new markets

Relationships with clients

Less restrictive policies

Have increased our staff

Low operating costs

You have indicated that the outlook for your organisation in

Base: All respondents with optimistic outlook for their economy,

What is your overall view on the outlook for your organisation in

Base: All respondents with location in mainland China, n=82 (2012:

Australian Trade Commission Australian Businesses in China 8

Of the 24 companies operating in Western China, 23

How would you rate your organisations financial performance in

Base: All respondents with location in mainland China, n=82 (2012:

Company size / profile

Alliance with local partners