The Outlook Is Down 57%, And Mainland Companies Are Expected To Raise Their Prices This Year.

The 2011 International Business survey report released by Kyoto Tianhua certified public accountants shows that mainland China's enterprises are facing inflation and other factors.

Compared with 60% optimism in 2010, only 42% of mainland Chinese respondents expressed optimism about the economic outlook for 2011, which has become one of the biggest drop in confidence in 2011.

In contrast, Latin America's emerging economies have the highest confidence index of 75%.

However, from the whole world

In the short term, the rise in prices of commodities and human resources poses new challenges to the development of Chinese enterprises.

The survey shows that 57% of the enterprises affected by the above factors are expected to raise the price of products in 2011, the highest level since 2006. This shows that the rising price level has a great impact on the production cost of enterprises.

Meanwhile, 69% of mainland enterprises are expected to be in 2011.

Although the outlook for 2011 is not optimistic, most of the surveyed enterprises are optimistic about the long-term development prospects of China's economy, and they all say they will increase investment in 2011.

52% indicates that recruitment will increase in 2011, 61% of enterprises are expected to increase R & D investment, and 47% enterprises are expected to increase investment in plant and equipment.

Xu Hua, managing partner and chairman of Beijing Tianhua accounting firm, believes that with the launch of the 12th Five-Year plan, a more scientific and balanced economic development will gradually replace the pursuit of high growth and high GDP.

The government's support for the seven new industries has also prompted enterprises to pay more attention to innovative technology and products.

Many private enterprises engaged in traditional industries are also seeking opportunities to develop new energy, energy saving and environmental protection.

Therefore, although Chinese enterprises have declined in optimism about the future macro-economy, they have not affected their intention to invest in R & D and equipment and their confidence in the long-term development of enterprises.