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US businesses eye domestic Chinese market

More US businesses seek expansion in China to cash in on the expanding domestic market, rather than seeing China as only a processing and export hub, according to Xinhua News.

About three-fourths of over 400 member companies surveyed by the American Chamber of Commerce in South China said their primary operation target is to provide goods or services for the domestic market in China.

The proportion, however, was only 46% in 2006.

This fact, together with other positive signs, indicated that China still has a very good business environment, Harley Seyedin, president of AmCham in South China was quoted saying.

The huge domestic market also provides significant profits for US companies which, in return, increased investment and added to their payrolls, the survey showed.

About 82.5% of respondents (79% lat year) said they made profits in China, the highest proportion since 2006, it said.

About 89% of the companies made additional investments last year, more than the survey results from early last year while two-thirds of the respondents have raise their investment budgets in China for the coming three years.

The vast domestic market means huge business opportunities for both local and foreign businesses, Seyedin said. – Source: Xinhua News