Profits Remain Elusive In China

Jan. 13, 2005
Making money is more often the exception than the rule for global companies operating in China. In a survey of 70 manufacturing and service companies with 229 wholly owned or joint-venture projects in China, 34% are unprofitable, and another 25% are only ...

Making money is more often the exception than the rule for global companies operating in China. In a survey of 70 manufacturing and service companies with 229 wholly owned or joint-venture projects in China, 34% are unprofitable, and another 25% are only breaking even, reports A.T. Kearney Inc., the Chicago-based management consulting arm of Electronic Data Systems Corp. Only 41% are profitable. Among manufacturers, only 38% of their projects are profitable; 38% are unprofitable, and another 24% are managing to break even.

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