American Profits in China Surge
American companies have obviously been doing extremely well in China over the past several years. A large number of companies have gone from unprofitable to profitable, and the total amount of profits has also gone up quite a bit. The following tiny piece was translated out of Modern Weekly:
In comparison to 1999, when 57% of American-owned businesses in China were profitable, this year 81% of businesses capitalized by Americans were profitable in China. The total amount of profit has also gone up by more than 50% in this same time period, creating a new record of profits for American owned companies in China.
While a 50% increase in total profits over seven years is not a huge increase (on an annualized basis this is only about 6% per year, and this is China, the GDP of which was growing at around 10% per year overall during the same time period) , it probably does not include the amount that it took to lift American owned companies into profitability that were once in the red in China. Perhaps the 50% is a significant understatement of the total amount of money companies stopped losing, in combination with the total profits of all American owned companies in China.
