Foreign Profits Pass US$200 Billion

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I recently wrote about companies making money in China (“Is Anyone Making Money in China?”), and listed several local and foreign companies that were doing very well (and one or two who were not). Now the Chinese Ministry of Commerce has reported (in a fit of PR fever?) that foreign companies in China have accumulated profits of over US$200 billion since the 1990’s. Details include:

    • Foreign Enterprises (Total): Over 500,000 from 190 countries (and regions), including 450 of the Fortune 500
    • Foreign Investment (Total): Over 270 billion
    • Employees of Foreign Companies (Total): Over 24 million
    • Imports by Foreign-Funded Companies (Annually): Over US$560 billion
    • Profits of Foreign Companies (Total, After Tax): Over US$200 billion

As is often the case, the statistics themselves come without a lot of detail – and could anyway be subject to revision, as with the GDP figure last year (see here). But the scale of investment, and the generally positive results, are interesting to note. I doubt though, that there will be a follow-up announcement about the losses suffered by some of the more unfortunate foreign companies that have had their fingers burnt (neither the companies nor the government want to focus attention on the failures). But you may already have read about some of them in gripping books such as “China Dream” and “Mr. China”.

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One Response to “Foreign Profits Pass US$200 Billion”

  1. Archive » Big Profits – But Who Should Get Them?| China Business Blog Says:

    […] Economy We already know that foreign businesses in China are profitable (see here and here), but US companies’ corporate profits were over US$2 billion in the fist half o […]

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