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1、2021 China Business SurveyHowei Wu|Bin Xu|Dongsheng Zhou|Danni Chen|Ruoshi Li|Liyang RuanOn Business Performance and Adjustments of Companies in China during the COVID-19 PeriodCEIBS China and the World Research AreaCEIBS Healthcare Sector Research Centre Howei Wu Bin Xu Dongsheng Zhou Danni Chen Ru

2、oshi Li Liyang Ruan2021 China Business SurveyOn Business Performance and Adjustments of Companies in China during the COVID-19 PeriodCEIBS China and the World Research AreaCEIBS Healthcare Sector Research CentreCopyright 2021 CEIBS All Rights ReservedTHe ReseARCH TeAm 1ACknOWLeDgemenT 2seCTIOn 1:PRe

3、fACe 3 1.1.InTRODuCTIOn Of ReseARCH PROjeCT 4 1.2.mACROeCOnOmIC BACkgROunD 6seCTIOn 2:DesCRIPTIOn Of sAmPLe enTeRPRIses 9 2.1.RegIsTRATIOn TyPes 10 2.2.ReVenue COnTRIBuTIOn Of BusIness In CHInA 13 2.3.InDusTRy DIsTRIBuTIOn 14 2.4.BusIness sIZes 17 2.5.PRODuCT/seRVICe POsITIOnIng 18 2.6.CLIenT TyPes

4、In CHInA 19seCTIOn 3:COmPARIng THe ImPACT fROm COVID-19 PAnDemIC WITHIn-CHInA 21 AnD OuTsIDe-CHInA 3.1.ImPACT On BusIness OPeRATIOns RegIOn-WIse 22 3.1.A.BusIness-In-CHInA 22 3.1.B.BusIness-OuTsIDe-CHInA 25 3.1.C.ImPACT fROm BusIness-OuTsIDe-CHInA By RegIOn 28 3.2.ImPACT On BusIness OPeRATIOns TImeW

5、Ise 30 3.2.A.BusIness-In-CHInA 30 3.2.B.BusIness-OuTsIDe-CHInA 31 3.3.ReCOVeRy On BusIness OPeRATIOns In CHInA 32 3.4.suPPLy CHAIn 34TABLE OF CONTENTSseCTIOn 4:ADjusTmenTs TO THe ImPACT fROm COVID-19 PAnDemIC 37 4.1.ADjusTmenTs TO OnLIne OPeRATIOns 38 4.2.ADjusTmenTs TO HumAn ResOuRCe(HR)41 4.2.A.em

6、PLOyee sIZe 41 4.2.B.emPLOyee sALARy 42 4.3.eVALuATIOn Of POLICy suPPORT ReCeIVeD 43seCTIOn 5:COnfIDenCe In BusIness OPeRATIOns In CHInA 45 5.1.mOsT ImPORTAnT fACTORs COnsIDeReD fOR BusIness 46 In CHInA fOR 2021 5.2.mOsT ImPORTAnT fACTORs COnsIDeReD fOR BusIness 48 In CHInA fOR 2021-2025 5.3.eVALuAT

7、IOn Of CHInAs DOmesTIC AnD InTeRnATIOnAL 50 BusIness enVIROnmenT OVeR THe PAsT fIVe yeARs(2016-2020)5.4.COnfIDenCe InDICes fOR BusIness OPeRATIOns In CHInA 52 fOR 2021 AnD 2021-2025seCTIOn 6:HeALTHCARe ReLATeD COmPAny AnD PeRsOnAL ADjusTmenTs 55 6.1.ADjusTmenTs TO BusIness AnD emPLOyee BenefITs 56 6

8、.1.A.ADjusTmenTs TO BusIness OPeRATIOns 56 6.1.B.ADjusTmenTs TO emPLOyee BenefITs 60 6.2.PeRsOnAL CHAnges AnD ADjusTmenTs 61 6.2.A.CHAnges In sTRess LeVeL 61 6.2.B.PeRsOnAL meDICAL AnD HeALTH COnsumPTIOn 66seCTIOn 7:COnCLusIOn 67APPenDIX:QuesTIOnnAIRe 711Dr.Howei Wu is Assistant Professor of economi

9、cs at CeIBs.she received her B.A.and B.s.from Tsinghua university(Taiwan,China),and m.A.and Ph.D.from stanford university.Dr.Wu does research in macroeconomics,monetary economics,innovation,and the Chinese economy.she has published at the journal of economics Dynamics and Control and others.Before j

10、oining CeIBs,Dr.Wu taught at shanghai university of finance and economics and was a member of Chinas macroeconomic Analysis and forecast Project Team.Dr.Bin Xu is Professor of economics and finance,Wu jinglian Chair Professor in economics at CeIBs.He received his B.A.and m.A.from fudan university,an

11、d Ph.D.from Columbia university.Dr.Xus research focuses on issues of the global and Chinese economy.He has published extensively in both international and Chinese journals,and is author of Applying macroeconomics(2019)and International Trade(2009).Dr.Xu has worked as a consultant for International m

12、onetary fund(Imf)and the World Bank.Dr.Dongsheng Zhou is Professor of marketing at CeIBs and Director of CeIBs Healthcare sector Research Centre.He received his B.s.from the university of science&Technology of China(usTC),and Ph.D.from the university of British Columbia(uBC),Canada.Dr.Zhous research

13、 focuses on marketing strategies,game theory,multinational firms in China,and the globalisation of Chinese firms,and has published extensively in academic journals.Dr.Zhou has conducted consulting services for companies such as IBm and Du Pont.Danni Chen is Research Assistant of the Department of ec

14、onomics and Decision sciences at CeIBs.she received her bachelors degree from the University of Rochester in 2018,with triple majors in financial economics,mathematics and philosophy,and her m.s.degree in economics from the Chinese university of Hong kong in 2019.Danni was co-author of the 2020 CeIB

15、s survey on COVID-19s Impact on Business Operations in China.Ruoshi Li is Research Assistant of the Department of economics and Decision sciences at CeIBs.she received her bachelors degree from Boston university in 2017,with major in economics and minor in Business Administration,and her m.A.degree

16、in Quantitative economics and econometrics from Boston university in 2019.Before joining CeIBs,Ruoshi worked as an analyst in a Chinese state-owned private equity investment fund.Dr.Liyang Ruan is Research fellow of CeIBs Healthcare sector Research Centre.she received her Ph.D.in management from sha

17、nghai jiaotong university in 2017.Dr.Ruans research focuses on healthcare industry,marketing strategies,supply chain management,and CsR,and has published in both ssCI and CssCI journals.she also has published nearly 20 teaching cases in the global Platform of China Cases,Harvard Business Publishing,

18、and IVey Publishing,and co-edited synergise(2019),a case collection book.THE RESEARCH TEAm2ACkNOWLEDgEmENTThe authors would like to thank CeIBs alumni and students for their active participation in the survey,CEIBS staff from offices of Alumni,IT,Marcom,EMBA,FMBA,GEMBA,HEMBA,MBA,and executive educat

19、ion for their great support in distribution and promotion of the survey,and the financial support of a CEIBS research grant(Grant Number:17BICS).Our gratitude is extended to Swiss Center China and the various Swiss organizations and their affiliated companies for collaboration on the survey project.

20、The report is co-produced by CeIBs China&the World Research Area and CeIBs Healthcare sector Research Centre.The authors are responsible for all the errors.3section 1PREFACE4Figure 1:education Background oF respondents1 Foreign-owned firms include Hong Kong(China),Macao(China)and Taiwan(China)compan

21、ies.Chinese-owned firms refer to mainland China companies.Hereinafter we will refer to them as“foreign-owned firms”and“Chinese-owned firms”respectively.In our sample,294 work for foreign-owned firms,883 work for in Chinese-owned firms,and 11 is classified as“other”due to lack of information.1.1.Intr

22、oductIon of research ProjectThe China and europe International Business school(CeIBs)Research Team with three professors and three research assistants conducted an online survey from April 1st to April 14th 2021,receiving 1,188 valid responses in total.Among the 1,188 survey participants,883(about 7

23、5%)work for Chinese-owned firms or firms with 50%or more Chinese ownership,and 294(about 25%)work for foreign-owned firms in China or firms with more than 50%foreign ownership.1 figure 1 shows the education background of survey respondents.As the survey was conducted mainly via CeIBs platforms,the m

24、ajority of participants are CeIBs alumni and students(95%of the sample),among whom emBA alumni and students are the largest group(54.5%of the sample).figure 2 shows the roles played by survey respondents in their companies.44.2%of them are principal decision makers(such as CeOs/gms/Owners/Partners/C

25、hief Representatives),34.4%are deputy decision makers(such as VPs/Vice gms/Directors/Assistants of gm),and the remaining 20%are senior executives of their respective divisions.figure 3 shows the management experience of survey respondents:77.7%of them have at least ten years of management experience

26、.Among the survey respondents,28.3%are female and 71.5%are male.emBa of ceiBsexecutive education of ceiBsFinancial mBa(FmBa)of ceiBsHospitality emBa(HemBa)of ceiBsglobal emBa(gemBa)of ceiBsmBa of ceiBsotherSECTiON 1:PREFACE5 Figure 2:company executive roles oF respondentsFigure 3:management experien

27、ce oF respondentsprincipal decision making roledeputy decision making roleFinance executiveproject manager/Business development manager/product managermarketing executive/sales executivemaufacturing operations,logistics or engineering executiveHr executiver&d executiveother20 years or more10 to 19 y

28、ears5 to 9 yearsless than 5 yearsThe education and professional background of survey respondents indicates that the survey sample is not a typical sample of enterprises operating in China,but rather reflects the situation of the enterprises of the senior executives who have study experiences in CeIB

29、s,as more than two-thirds of the survey respondents are alumni and students of the programmes for company executives(EMBA/GEMBA/HEMBA).According to the class profile of CEIBS EMBA programme,the average age of participants is 39.8,average years of working experience is 16,and their average years of m

30、anaging experience is 11.7.more than 98%of the participants are senior managers.CeIBs has more than 20,000 alumni,including 10,000 emBA alumni who participated the most in this survey among all alumni or students.Based on the above information,we conclude that the survey result has reference value i

31、n the sense that it largely reflects how“head companies”(the leading companies and most active ones in their respective industries)in China assessed and judged the COVIDs impact on business operations.This is also confirmed by the fact that majority of the firms in the sample target the high-end spe

32、ctrum of the market(see section 2.5).SECTiON 1:PREFACE61.2.MacroeconoMIc BackgroundThe preliminary accounting results of Chinas 1st quarter gDP released by the national Bureau of statistics(nBs)on April 16,2021 summarize the macroeconomic setting of this survey.figure 4 shows the year-on-year growth

33、 rates of gDP and value added of broad industries(at constant price),that is,the growth rate over the same period last year(1st quarter of 2020).The released numbers show that China grew 18.3%year on year,recovering from the lows caused by COVID-19 in 2020.The biggest rebound can be seen in“Accommod

34、ation&Restaurants”(43.7%),which showed the biggest contraction of 35.3%among all industries in the first quarter of 2020.“Transport,Storage&Post”showed the second-highest recovery rate(32.1%),against a drop of 14%the year before.The primary industry(farming,forestry,Animal Husbandry&fishery)showed a

35、 small increase,with a year-on-year growth rate of 8.0%.In the secondary industry,both“Construction”and“Industrial Sector”had improved quite significantly,by 22.8%and 24.4%respectively.In the tertiary industry(service industry),which was faced with the biggest year-on-year decline in 2020 has also r

36、ebounded.“Wholesale&Retail Trades”reported a 26.6%growth,against a drop of 17.8%in 2020.“Finance”and“Transmission,Software&Information Technology Services”,the only two industries that reported a positive growth in the 1st quarter of 2020,continued to grow in 2021 with 5.4%and 21.2%respectively.Figu

37、re 4:industry growtH rate oF cHinese economy in 1st Quarter oF 2021(y-o-y)Financerenting,leasing activities&Business serviesFarming,Forestry,animal Husbandry,and Fisheryothersgross domestic product(gdp)information transmission,software&information technologyreal estateconstructionindustrial sectorwh

38、olesale&retail tradesmanufacturing industrytransport,storage and postaccommondation&restaurantsSECTiON 1:PREFACE72 Official manufacturing PMI rebounded from 35.7 in 2020 February to 52 in 2020 March,and service PMI from 30.1 to 51.8,both remained above 50 since then.Small manufacturing enterprise re

39、bounded in March but dipped below 50 seven times between 2020 June and 2021 February.Medium manufacturing enterprise also reported PMI below 50 twice in 2020 May and 2021 February.data display:tHe preliminary accounting results oF cHinas 1st Quarter gdpreleased By national Bureau oF statistics(nBs)o

40、F cHina in april,2021 industryShare of gDP Broad ClassificationCurrent Value(Trillion yuan)Share of gDPYear-on-Year ChangePrimary Industry4.8%farming,forestry,Animal Husbandry,&fishery1.19 4.8%8.0%secondary Industry37.3%Construction1.20 4.8%22.8%Industrial sector8.10 32.5%24.4%Tertiary Industry57.9%

41、Accommodation&Restaurants0.41 1.6%43.7%Wholesale&Retail Trades2.40 9.6%26.6%Transport,storage&Post1.01 4.0%32.1%Renting,Leasing Activities&Business services0.77 3.1%7.9%Real estate1.95 7.8%21.4%Other services4.47 17.9%8.8%finance2.31 9.3%5.4%Information Transmission,software&Information Technology1.

42、13 4.5%21.2%Total100.0%gross Domestic Product(gDP)24.93 100.0%18.3%SECTiON 1:PREFACE2020 has been a challenging year with only China enjoying growth.Recovery will be a common phenomenon around the globe and global trade will pick up(from the World economic Outlook by Imf in April).It is likely that

43、Chinas early success in containing the pandemic will again set her apart from other countries and continue to report stronger growth compared to other countries.Although China is welcoming a recovery in economic performance,the recovery path is heterogeneous among different industries and firms.Comp

44、aring manufacturing and service official PMI we find that both sectors exhibit immediate recovery in March 2020 and have remained to be expanding since then.However,from the official PMI for manufacturing,we see small and medium enterprises have been struggling to recover.29section 2DESCRiPTiON OF S

45、AmPLE ENTERPRiSES102.1.Registration Types Table 2 reports the companies in our survey sample by 8 categories according to their ownership structures.More than half of companies,specifically 56.9%,are wholly private-owned Chinese enterprise.The second-largest number is wholly foreign-owned enterprise

46、 which account for 22.3%.Chinese State-Owned Enterprise(SOEs),which is defined as majority state-owned enterprise plus wholly state-owned enterprise,account for 9.2%(110 firms)of the whole sample.Chinese private-owned enterprise,which contains wholly private-owned enterprise and majority private-own

47、ed companies,takes up 62.1%(738 firms).Foreign firms including wholly foreign-owned and majority foreign-owned joint ventures which together account 24.8%(294 firms).Figure 5:sample By registration typewholly private-owned chinese enterprisewholly Foreign-owned enterprisemixed-ownership chinese ente

48、rprise (majority private-owned)mixed-ownership chinese enterprise(majority state-owned)wholly state-owned chinese enterpriseForeign Joint venture(minority Foreign-owned)Foreign Joint venture(majority Foreign-owned)otherdata display:registration typesNumberPercentWholly Private-Owned Chinese enterpri

49、se 67656.9%Wholly foreign-Owned enterprise 26522.3%mixed-Ownership Chinese enterprise(majority Private-Owned)625.2%mixed-Ownership Chinese enterprise(majority state-Owned)554.6%Wholly state-Owned Chinese enterprise 554.6%foreign joint Venture(minority foreign-Owned)352.9%foreign joint Venture(majori

50、ty foreign-Owned)292.4%Other 110.9%Total1,188100.0%SECTiON 2:DESCRiPTiON OF SAmPLE ENTERPRiSES11 Figure 6:source oF Biggest Foreign ownersHipAmong the firms with foreign ownership,the top three regions are Europe(39.8%),United States(28.7%),and Hong kong China(14.2%).The exact ranking is reported in

51、 figure 6.3 u.s.Hong kong(china)germanyswissFranceu.k.swedenothertaiwan(china)Japansingaporespainsouth koreanetherlandnew Zealandcanadaaustralia3 Some respondents may choose“other”to some questions and specify.If one situation is repeatedly specified,we will list it as a separate situation when anal

52、yzing the responses,instead of putting it under“other”.For example,in terms of source of biggest foreign ownership,location where the company is listed,industry,revenue,salary,measures to safeguard employees health condition,and important factors considered on business operations in China,the report

53、 lists more situations than the options of corresponding questions in the questionnaire.SECTiON 2:DESCRiPTiON OF SAmPLE ENTERPRiSES12Figure 7:Location Where company is Listedshenzhen(china)shanghai(china)u.s.hong Kong(china)uKBoth mainland china and hong KongFranceotherswissgermanyswedennew otc mark

54、et(china)singaporeJapantaiwan(china)australiasecTioN 2:DescriPTioN of samPle eNTerPrisesOf the 1,188 firms,355(29.9%)are listed,with Shenzhen(23.1%),Shanghai(22.8%)and United States(19.7%)as the top three listing locations(Figure 7).132.2.Revenue ContRibution of business in ChinaFigure 8 presents th

55、e revenue contribution of business-in-China.890 firms report 50%or more revenue from business-in-China(76%),we define them as introverted.Firms with 50%or more revenue from overseas business are defined as extroverted(281 firms with a share of 24%).Figure 8:revenue contriBution oF Business-in-china1

56、00%75%to 99%50%to 74%25%to 49%0%to 24%otherdata dispLay:revenue contriBution oF Business-in-chinaNumberPercentIntroverted:Business in China accountsfor more than 50%of the total revenue(N=890;Share=76%)100%51743.5%75%-99%28123.7%50%-74%9717.2%Extroverted:Overseas Business accountsfor more than 50%of

57、 the total revenue(N=281;Share=24%)25%-49%848.2%0%-24%2047.1%other50.4%Total1,188100.0%secTioN 2:DescriPTioN of samPle eNTerPrises142.3.Industry dIstrIButIonfigure 9 presents the distribution of main business sector of our survey sample.figure 10 presents the industry distribution of firms in servic

58、e sector.Figure 11 presents the industry distribution of firms in manufacturing sector.The first column of table below shows the first level industrial classification of the National Bureau of Statistics,and the third column shows the industry classification used in this survey.There are 26 industri

59、es in the questionnaire:1 industry in the primary sector(Agriculture,forestry,Animal Husbandry,fishing&mining)4,12 in the secondary sector,and 13 in the tertiary sector.There are 23 Agribusiness companies which account for only 1.7%in our sample.Considering that companies of most CeIBs alumni and st

60、udents are engaged in modern agricultural production similar to manufacturing,we put“Agriculture,Forestry,Animal Husbandry,Fishing&Mining”under manufacturing.As a result,the sample size of manufacturing companies becomes 598 with a share of 43.5%,including 13 industries.We further combined“Construct

61、ion”and“Real estate”,and put it under service sector,so the size of service sector is 777 with a share of 56.5%,covering 13 major industries.Figure 9:main Business sectorBoth services&manufacturing(n=187)15.7%manufacturing(n=411)34.6%services(n=590)49.7%SECTiON 2:DESCRiPTiON OF SAmPLE ENTERPRiSES4 W

62、e later refer to this industry as“Agribusiness”in the report.15Figure 10:industry distriBution oF service sectorFigure 11:industry distriBution oF manuFacturing sectorFinancial servicesprofessional services&Business serviceswholesale&retailtelecommunications&information servicesconstruction&real est

63、ateHealth care,medical&sanitationeducationlogistics,transportation&storageculture,entertainment&recreationcatering,accommodation&travelautomobile related servicesenvironment&public Facilities managementscientific research&technical servicesconsumer productsmachinery&equipmentpharmaceutical products&

64、medical devicescommunications&electronic productschemical&energy productsautomobile&transportation vehiclesmetal&non-metallic productsagriculture,Forestry,Husbandry,Fishing&miningcivil engineering&constructionpublic utilities(such as water and electricity supply)papermaking&printingtextiles&clothing

65、rubber&plastics productsotherSECTiON 2:DESCRiPTiON OF SAmPLE ENTERPRiSES16data display:industry distriBution oF survey vs.industry distriBution oF national Bureau oF statistics(nBs)oF cHina By sHare oF gdpindustry Classification(NBS)Share of gDP(NBS)industry Classification(Survey)Number(Survey)Perce

66、nt(Survey)Primary industry4.8%Agriculture,forestry,Husbandry,fishing&mining231.7%Secondary industry(Excluding Construction)32.5%Consumer Products1057.6%machinery&equipment987.1%Pharmaceutical Products&medical Devices956.9%Communications&electronic Products906.5%Chemical&energy Products614.4%Automobi

67、le&Transportation Vehicles513.7%metal&non-metallic Products402.9%Civil engineering&Construction151.1%Public utilities(water,electricity,etc.)70.5%Papermaking&Printing50.4%Textiles&Clothing40.3%Rubber&Plastics Products30.2%Other10.1%Total(manufacturing)59843.5%Tertiary industry(including Construction

68、)62.7%finance9.3%financial services14410.5%Real estate7.8%Construction&Real estate826.0%Construction4.8%Wholesale&Retail Trades9.6%Wholesale&Retail1087.9%Information Transmission,software&Information Technology4.5%Telecommunications&Information services946.8%Scientific Research&Technical Services50.

69、4%Transport,storage and Post4.0%Logistics,Transportation&storage292.1%Renting,Leasing Activities&Business services3.1%Professional services&Business services14310.4%Accommodation&Restaurants1.6%Catering,Accommodation&Travel251.8%Other services17.9%Health Care,medical&sanitation785.7%education312.3%C

70、ulture,entertainment&Recreation282.0%environment&Public facilities management50.4%Automobile related services50.4%Service industry77756.5%Total100.0%Total1,375100.0%Note:We have 187 firms in the survey with business operations that belong to both service and manufacturing sector.SECTiON 2:DESCRiPTiO

71、N OF SAmPLE ENTERPRiSESThe composition of the service sector in our sample is close to the contribution of service industries to the first quarter Chinas GDP in NBS report.For example,“Financial Services”accounts for 10.5%of the service sector in terms of sample number,and 9.3%of Chinas GDP in NBS r

72、eport;“Information Services”accounts for 6.8%of the service sample and 4.5%of GDP.“Logistics,Transportation&Storage”accounts for 2.1%of the service sample and 4.0%of GDP.“Catering,Accommodation&Travel”accounts for 1.8%of the service sample and 1.6%of the GDP.In the NBS data,service industries such a

73、s“Education”,“Health Care”and“Entertainment”are lumped together into“Other Services”,while in our case,“Education”(2.3%),“Health Care”(5.7%)and“Culture,Entertainment&Recreation”(2.0%)are listed separately.These similarities in industry distributions increase the reference value of the survey result.

74、172.4.BusIness sIzesFigure 12 presents the distribution of firm size.We measure firm size by number of employees in China.Figure 12:numBer oF employees in cHinagiantextra-largelargemedium-to-largemediumsmall-to-mediumsmallextra-smallmicrodata display:Firm siZe(numBer oF employees in cHina)Number of

75、EmployeesNumberPercentgiant50,000 or above413.5%extra-Large10,000 to 49,99912510.5%Large5,000 to 9,999705.9%medium-to-Large2,000 to 4,99913211.1%medium1,000 to 1,9991048.8%small-to-medium300 to 99924720.8%small50 to 29930825.9%extra-small10 to 4912810.8%micro0 to 9332.8%Total1,188100.0%SECTiON 2:DES

76、CRiPTiON OF SAmPLE ENTERPRiSES182.5.Product/servIce PosItIonIngFrom Figure 13 we see that majority of the firms target the high-end spectrum of the market.25.5%consider themselves as high-end and 35%target both high and middle-end.17.7%cater to all range,and only 1.3%consider themselves as low-end.T

77、his observation echoes the unique characteristic that the firms in this survey are the leading players in their respective fields.Figure 13:sample By product/service positioningHigh-endmid-endlow-endBoth high-end&mid-endBoth mid-end&low-endBoth high-end&low-endall range from low,middle to highotherd

78、ata display:product/service positioningNumberPercentHigh-end 30325.5%mid-end 16614.0%Low-end 151.3%Both high-end&mid-end 41635.0%Both mid-end&low-end 675.6%Both high-end&low-end 70.6%All range from low,middle to high 21017.7%Other 40.3%Total1,188100.0%SECTiON 2:DESCRiPTiON OF SAmPLE ENTERPRiSES192.6

79、.clIent tyPes In chInafigure 14 shows the distribution of client types in China.Figure 14:client types in cHinacompanies/organizations(B2B)Both individuals and companies/organizations(B2c&B2B)individuals(B2c)no client in chinaotherdata display:client types in cHinaNumberPercentCompanies/Organization

80、s(B2B)66355.8%Both individuals and companies/organizations(B2C&B2B)35329.7%Individuals(B2C)16213.6%no Client in China80.7%Other 20.2%Total1,188100.0%SECTiON 2:DESCRiPTiON OF SAmPLE ENTERPRiSES21section 3COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNAThis section gives a de

81、tailed analysis of the impact of COVID-19 pandemic in 2020.We draw comparison between within-China and outside-China from four important dimensions:revenue change compared to 2019,timing of maximum revenue drop,timing of business operation recovery,impact on supply chain operations.223.1.IMPact on B

82、usIness oPeratIons regIon-wIse3.1.A.BuSiNESS-iN-CHiNA figure 15 shows the revenue change in China from the impact of COVID-19 on manufacturing and services,and Figure 16 by ownership type.The figures are based on Question 9“Compared to 2019,your companys 2020 revenue from business-in-China:”Figure 1

83、5:companys 2020 revenue in cHina cHange,By sector manufacturing services whole sampleincreased by 25%or moreincreased by 10%to 24%increased by 2%to 9%stayed the same(within 2%up/down)fell by 2%to 9%fell by 10%to 24%fell by 25%to 49%fell by 50%or moreSECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDE

84、miC WiTHiN-CHiNA AND OuTSiDE-CHiNA23Both manufacturing and services sector have approximately 15%of firms that have almost no change in revenue.As can be seen from figure 15,there is more variation in the performance of the service sector:compared to manufacturing sector and the whole sample,more se

85、rvice sector firms are clustered at either an increase of 25%or more in revenue or a 50%or more drop in revenue.from figure 16,63.6%of sOes reported an increase,while only 51.9%of private enterprises and 54.1%of foreign-owned firms stated that there was an increase in revenue from business-in-China.

86、5 At the same time,only 21.8%of sOes reported a drop in revenue,whereas 32.4%of private enterprises and 29.6%of foreign firms stated a revenue drop.Foreign firms had the smallest proportion with a reported of 25%or more revenue increase and the largest proportion with a reported revenue drop of 50%o

87、r more.5 For Figures 17 and 18,we did not present results of sectors whose shares in the entire industry stay below 2%.Among the service sector,“Catering,Accommodation&Travel”have the greatest number of firms reporting a drop of 25%or more,followed by“Education”and“Logistics,Transportation&Storage”.

88、Whereas“Logistics,Transportation&Storage”also have the greatest number of firms reporting an increase of 25%or more,followed by“Telecommunications&Information Services”,and“Culture,Entertainment&Recreation”.For the manufacturing sector,“Agribusiness”has the biggest reported share for 25%or more reve

89、nue drop,followed by“Pharmaceutical Products”and“Consumer Products”.“Pharmaceutical Products”was also the industry that have the biggest reported share in a 25%or more increase in revenue,followed by“Communications&Electronic Products”,and“Automobile&Transportation Vehicles”.Figure 16:companys 2020

90、revenue in cHina cHange,By ownersHip typeincreased by 25%or moreincreased by 10%to 24%increased by 2%to 9%stayed the same(within 2%up/down)fell by 2%to 9%fell by 10%to 24%fell by 25%to 49%fell by 50%or more Foreign-owned private enterprise soeSECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiT

91、HiN-CHiNA AND OuTSiDE-CHiNA24Figure 17:2020 cHina revenue,“Fell By 25%or more”vs.“increase By 25%or more”,service sectorFigure 18:2020 cHina revenue,“Fell By 25%or more”vs.“increased By 25%or more”,manuFacturing sector Fell by 25%or more increased by 25%or more Fell by 25%or more increased by 25%or

92、moreagriculture,Forestry,Husbandry,Fishing&miningpharmaceutical products&medical devicesconsumer productsindustry averagecivil engineering&constructioncommunications&electronic productsautomobile&transportation vehiclesmetal&non-metallic productschemical&energy productsmachinery&equipmentcatering,ac

93、commodation&traveleducationlogistics,transportation&storageculture,entertainment&recreationindustry averageHealth care,medical&sanitationprofessional services&Business serviceswholesale&retailtelecommunications&information servicesFinancial servicesconstruction&real estateSECTiON 3:COmPARiNg THE imP

94、ACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA253.1.B.BuSiNESS-OuTSiDE-CHiNAThe figures are based on Question 10“Compared to 2019,your companys 2020 revenue from business-outside-China:”Note that firms who choose“100%operating only China”in Q8 skip Q10.As can be seen from figure 19,the ma

95、nufacturing sector was less vulnerable compared to the service sector,with 11.4%of the sector reporting an increase of 25%or more(whereas 15.7%reported an increase of the same magnitude for business-in-China).20.7%of the service sector reported almost no change in revenue from overseas business,howe

96、ver,9.8%reported a drop of more than 50%from business-outside-China.from figure 206,we find that 58.2%of foreign-owned firms have a revenue drop in business-outside-China,whereas SOEs and private firms have similar share in revenue decline(41%).Private firms on average performed better than their co

97、unterparts,with 34.6%reporting an increase in revenue from overseas operations.sOes and foreign firms performed similarly,with 29.5%and 28.2%reporting an increase,respectively.6 For Figures 21 and 22,we did not present results of sectors whose shares in the entire industry stay below 2%.Figure 19:co

98、mpanys 2020 overseas revenue cHange compared to 2019,By sector manufacturing services whole sampleincreased by 25%or moreincreased by 10%to 24%increased by 2%to 9%stayed the same(within 2%up/down)fell by 2%to 9%fell by 10%to 24%fell by 25%to 49%fell by 50%or moreSECTiON 3:COmPARiNg THE imPACT FROm C

99、OViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA26Among the service sector,“Catering,Accommodation&Travel”have the greatest number of firms reporting a drop of 25%or more,followed by“Construction&Real Estate”,and“Culture,Entertainment&Recreation”.“Healthcare,Medical&Sanitation”have the greatest numbe

100、r of firms reporting an increase of 25%or more,followed by“Logistics,Transportation&Storage”.For the manufacturing sector,“Machinery&Equipment”have the biggest reported share for 25%or more revenue drop,followed by“Consumer Products”and“Agribusiness”.“Pharmaceutical Products&medical Devices”was the

101、industry that have the biggest reported share in a 25%or more increase in revenue,followed by“Agribusiness”,and“Automobile&Transportation Vehicles”.Figure 20:companys 2020 overseas revenue cHange compared to 2019,By ownersHip type Foreign-owned private enterprise soeincreased by 25%or moreincreased

102、by 10%to 24%increased by 2%to 9%stayed the same(within 2%up/down)fell by 2%to 9%fell by 10%to 24%fell by 25%to 49%fell by 50%or moreSECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA27Figure 21:2020 overseas revenue,“Fell By 25%or more”vs.“increased By 25%or more”,s

103、ervice sectorFigure 22:2020 overseas revenue“Fell By 25%or more”vs.“increased By 25%or more”,manuFacturing sector Fell by 25%or more increased by 25%or more Fell by 25%or more increased by 25%or morecatering,accommodation&travelconstruction&real estateculture,entertainment&recreationIndustry Average

104、professional services&Business serviceslogistics,transportation&storageHealth care,medical&sanitationwholesale&retailFinancial servicestelecommunications&information servicesmachinery&equipmentconsumer productsagriculture,Forestry,Husbandry,Fishing&miningpharmaceutical products&medical devicesIndust

105、ry Averageautomobile&transportation vehiclesmetal&nonmetallic productscommunications&electronic productschemical&energy productsSECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA283.1.C.imPACT FROm BuSiNESS-OuTSiDE-CHiNA BY REgiONBased on Question 11“Compared to 201

106、9,which region(s)did your companys revenue drop the most in 2020?(Multiple Answers Possible)”.To avoid misleading results,we exclude firms whose choose the first option in Q8(revenue contribution of China is 100).7 Among the firms that do not operate solely in China(671 firms),the biggest outside-Ch

107、ina revenue drop occurred in u.s.and eu.7 For Figures 24 and 25,we did not present results of sectors whose shares in the entire industry stay below 2%(Education,Technical Services,Environment&Public Utilities,Automobile in Services;Public Utilities,Papermaking&Printing,Rubber&Plastics,Civil Enginee

108、ring&Construction,Textile&Clothing).Figure 23:region(s)oF companys Biggest revenue drop in 2020(multiple answers possiBle)u.s.european unionchina(mainland)aseanJapan and koreaindiaHong kong(china)australiarussia,central and eastern european countriestaiwan(china)For service sector,more firms reporte

109、d a drop in U.S.(29.9%)than in EU(24.6%).For both regions,“Catering,Accommodation&Travel”have the greatest number of firms reporting a drop.For manufacturing sector,slightly more firms reported a drop in EU(32.8%)than in U.S.(29.9%).SECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA

110、AND OuTSiDE-CHiNA29Figure 24:sHare oF companies in services cHoosing eu/us as tHe region wHere revenue dropped tHe most in 2020Figure 25:sHare oF companies in manuFacturing cHoosing eu/us as tHe region wHere revenue dropped tHe most in 2020 eu us eu uscatering,accommodation&travelHealth care,medical

111、&sanitationprofessional services&Business servicesIndustry Averagewholesale&retailtelecommunications&information serviceslogistics,transportation&storageconstruction&real estateFinancial servicesculture,entertainment&recreationmetal&nonmetallic productsmachinery&equipmentagriculture,Forestry,Husband

112、ry,Fishing&miningIndustry Averageconsumer productspharmaceutical products&medical devicesautomobile&transportation vehiclescommunications&electronic productschemical&energy productsSECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA303.2.IMPact on BusIness oPeratIons

113、 tIMewIse3.2.A.BuSiNESS-iN-CHiNA Based on Question 14“In which quarter did your companys China operating revenue drop the most?(multiple Answers Possible)”we observe that on average,the majority of companies felt the impact on revenue in China most sharply in 2020 Q1.This is true across manufacturin

114、g and service sectors,also across different ownership types.Regardless of business sector or ownership type,we find similar proportion that reported no drop in revenue.manufacturing services whole sampleFigure 26:timing oF companys Biggest cHina operating revenue drop(multiple answers possiBle),By s

115、ectorrevenue did not fall2021 Q12020 Q42020 Q32020 Q22020 Q1 Foreign-owned private enterprise soeFigure 27:timing oF companys Biggest cHina operating revenue drop(multiple answers possiBle),By ownersHip typerevenue did not fall2021 Q12020 Q42020 Q32020 Q22020 Q1SECTiON 3:COmPARiNg THE imPACT FROm CO

116、ViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA313.2.B.BuSiNESS-OuTSiDE-CHiNA Based on Question 15“In which quarter did your companys outside-China operating revenue drop the most?(multiple Answers Possible)”8 we observe that on average most companies felt the impact on overseas revenue in 2020 Q2.Th

117、is is true across both manufacturing and service sectors.By examining across ownership types,we find that foreign firms also suffered greatly in 2020 Q3 and have a lower share of firms reporting no decline in revenue(4.1%compared to 7.7%of private enterprises and 8.2%of sOes).Foreign-owned private e

118、nterprise soeFigure 29:timing oF companys Biggest outside-cHina operating revenue drop(multiple answers possiBle),By ownersHip type manufacturing services whole sampleFigure 28:timing oF companys Biggest outside-cHina operating revenue drop(multiple answers possiBle),By sectorrevenue did not fall202

119、1 Q12020 Q42020 Q32020 Q22020 Q1revenue did not fall2021 Q12020 Q42020 Q32020 Q22020 Q1SECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA8 Firms who choose“100%operating only China”in Q8 skip Q15.323.3.recovery on BusIness oPeratIons In chInaBased on Question 16“In

120、which quarter did your companys China operations recover by 80%or more for the first time?“,31.6%companies reported a recovery by 80%or more in the second quarter of 2020,and 29%in the thrid quarter.Only 7.5%stated that they still have not recovered by 80%or more.In Figure 30 we find that regardless

121、 of ownership type,companies mainly reported a recovery of 80%or more in the second and third quarter of 2020.slightly more private firms(8.0%)and foreign firms(7.1%)reported not yet recovered,as compared to SOEs(6.4%).On average,9.6%of service sector still have not recovered by 80%or more,and 6.6%o

122、f the manufacturing sector.Among the service sector,firms in“Education”and“Catering,Accommodation&Travel”are struggling the most.For firms in manufacturing,“Agribusiness”and“Consumer Products”are the industries that are lagging behind.99 For Figures 31 and 32,we did not present results of sectors wh

123、ose shares in the entire industry stay below 2%.Foreign-owned private enterprise soeFigure 30:timing oF companys cHina operations recovered By 80%or more For tHe First time,By ownersHip typeno negative impact during the pandemic2020 Q12020 Q22020 Q32020 Q42021 Q1still not recovered by 80%or moreSECT

124、iON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA33Figure 31:sHare oF companies in service sector wHose cHina operations still Have not recovered By 80%or moreFigure 32:sHare oF companies in manuFacturing sector wHose cHina operations still Have not recovered By 80%or

125、moreeducationcatering,accommodation&travellogistics,transportation&storageculture,entertainment&recreationprofessional services&Business servicesindustry averageFinancial servicestelecommunications&information serviceswholesale&retailHealth care,medical&sanitationconstruction&real estateagriculture,

126、Forestry,Husbandry,Fishing&miningconsumer productscivil engineering&constructionindustry averagepharmaceutical products&medical devicesautomobile&transportation vehiclescommunications&electronic productsmetal&nonmetallic productsmachinery&equipmentchemical&energy productsSECTiON 3:COmPARiNg THE imPA

127、CT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA343.4.suPPly chaInBased on Question 18“How did COVID-19 affect the within-China supply chain relied by your company?”,Figure 33 shows that most of the firms have almost no impact or only moderate negative impact.For firms that experience a very

128、 large negative impact,we have 7.1%of private enterprises,compared to 4.1%of foreign firms,and only 1.8%of SOEs.Since more firms in the manufacturing sector rely on supply chains,we break down the sector by industry in figure 34.10 On average,60.0%of manufacturing firms experienced a negative impact

129、 to their domestic supply chain,with“Civil Engineering&Construction”reporting the biggest share of firms being affected.10 For Figures 34 and 36,we did not present results of sectors whose shares in the entire industry stay below 2%.Foreign-owned private enterprise soeFigure 33:impact oF covid-19 on

130、 tHe witHin-cHina supply cHain relied By company,By ownersHip typeour company does not rely on supply chain within chinapositive impact on supply chain within china relied by my companyalmost no impact(within 2%up/down)moderate negative impact(affecting 2%to 9%)large negative impact(affecting 10%to

131、19%)very large negative impact(affecting 20%or more)SECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA35Figure 34:sHare oF companies in eacH manuFacturing industry witH domestic supply cHain negatively aFFected By covid-19civil engineering&constructioncommunications

132、&electronic productsautomobile&transportation vehiclesconsumer productsmachinery&equipmentagriculture,Forestry,Husbandry,Fishing&miningchemical&energy productsindustry averagemetal&nonmetallic productspharmaceutical products&medical devicesBased on Question 19“How did COVID-19 affect the overseas(ou

133、tside China)supply chain relied by your company?”,only 14.9%of the firms reported almost no impact,and 10%reported a negative impact of 20%or more.Foreign firms are affected more severely than their counterparts.In Figure 36,we see that on average,64.1%of manufacturing firms experienced a negative i

134、mpact to their overseas supply chain,with“Communications&Electronic Products”and“Automobile&Transportation Vehicles”having the biggest share of firms being affected.SECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA36 Foreign-owned private enterprise soeFigure 35:im

135、pact oF covid-19 on overseas supply cHain relied By company,By ownersHip typeFigure 36:sHare oF companies in eacH manuFacturing industry witH overseas supply cHain negatively aFFected By covid-19very large negative impact(affecting 20%or more)large negative impact(affecting 10%to 19%)moderate negati

136、ve impact(affecting 2%to 9%)almost no impact(within 2%up/down)positive impact on overseas supply chain relied by my companyour company does not rely on overseas supply chaincommunications&electronic productsautomobile&transportation vehicleschemical&energy productsindustry averagepharmaceutical prod

137、ucts&medical devicesmetal&nonmetallic productsconsumer productsagriculture,Forestry,Husbandry,Fishing&miningcivil engineering&constructionSECTiON 3:COmPARiNg THE imPACT FROm COViD-19 PANDEmiC WiTHiN-CHiNA AND OuTSiDE-CHiNA37section 4ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiCThis section discus

138、ses the adjustments taken by companies in response to the pandemic:adjustments to online business operations,adjustments in personnel management including hiring and salary decisions,and evaluation of governments support to firm.384.1.adjustMents to onlIne oPeratIonsWe find adjustments to online ope

139、rations based on Question 12“Looking back,in 2019 prior to the outbreak of COVID-19,what percentage of your China business was done online?”and Question 13“As of today in 2021,what percentage of your China business is done online?”.Before the outbreak,majority of the firms have less than 4%of busine

140、ss done online,regardless of ownership types.Private firms have a larger share of firms conducting 80%or more of their business online in 2019 already(11.9%)and increased slightly after the outbreak(12.5%).We find that the share of firms that have 4%or less business done online have dropped:63.3%to

141、53.0%for private firms,66.3%to 57.8%for foreign firms,and 56.4%to 43.6%for SOEs.For conducting 5%to 19%of businesses online,SOEs have increased significantly from 21.8%to 31.8%.Foreign-owned private enterprise soeFigure 37:sHare oF cHina Business done online prior to tHe outBreak oF covid-19,By owne

142、rsHip type80%or above50%-79%20%-49%5%-19%0%-4%SECTiON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC39 Foreign-owned private enterprise soeFigure 38:sHare oF cHina Business done online as oF today,By ownersHip type80%or above50%-79%20%-49%5%-19%0%-4%To draw implications of the decision of stayin

143、g offline to going online,we compare the share of operating 4%or less businesses online between 2019 and 2021 by industries in figures 39 and 40.11 On average,55.3%of the service sector had 4%or less online operations in 2019,whereas only 42.5%in 2021.for the manufacturing sector,76.6%had 4%or less

144、online operations in 2019,and dropped to 68.8%in 2021.All industries exhibited a migration to businesses online.Among the service sector,the biggest switch from offline to online is“Education”(64.5%had 4%or less online in 2019 compared to 41.9%in 2021),followed by“Culture,Entertainment&Recreation”(4

145、6.4%to 28.6%),and“Construction&Real Estate”(82.9%to 67.1%).Among the manufacturing sector,the biggest switch from offline to online is“Consumer Products”(51.4%to 33.3%),followed by”Agribusiness”(91.3%to 78.3%).11 For Figures 39 and 40,we did not present results of sectors whose shares in the entire

146、industry stay below 2%.SECTiON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC40 0-4%(2021)0-4%(2019)0-4%(2021)0-4%(2019)Figure 39:sHare oF companies in services witH cHina Business done online For 4%or less,2019 vs.2021Figure 40:sHare oF companies in manuFacturing witH cHina Business done online

147、 For 4%or less,2019 vs.2021construction&real estateHealth care,medical&sanitationlogistics,transportation&storageprofessional services&Business servicesIndustry Averageeducationtelecommunications&information serviceswholesale&retailFinancial servicesculture,entertainment&recreationcatering,accommoda

148、tion&travelautomobile&transportation vehiclesmetal&nonmetallic productsagriculture,Forestry,Husbandry,Fishing&miningchemical&energy productsmachinery&equipmentpharmaceutical products&medical devicescommunications&electronic productsIndustry Averagecivil engineering&constructionconsumer productsSECTi

149、ON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC414.2.adjustMents to huMan resource(hr)4.2.A.EmPLOYEE SiZEBased on Question 21“What has happened to your companys employee size since the outbreak of COVID-19?”,figure 41 ranks the proportion of companies in services and manufacturing,and figure 4

150、2 ranks the companies by ownership.Both manufacturing and service sector have approximately 41%of firms reporting almost no change to employee size.Manufacturing sector was slightly more aggressive in recruiting(39.3%reported an increase)compared to service sector(38.1%).Across all ownership types,l

151、ess than 10%reported significant reduction of employee size,while the majority of firms reported almost no change in human resource.We find 57.3%of SOEs chose to keep employee size constant,resulting in smaller reductions compared to private and foreign firms,but also less expansion as well.41.7%of

152、private firms reported to have increased hiring.manufacturing services whole sampleFigure 41:cHanges to companys employee siZe since tHe outBreak oF covid-19,By sectorlarge increase of 10%or abovesmall increase of 2%to 9%almost no change(within 2%up/down)small reduction of 2%to 9%significant reducti

153、on of 10%or above Foreign-owned private enterprise soeFigure 42:cHanges to companys employee siZe since tHe outBreak oF covid-19,By ownersHip typelarge increase of 10%or abovesmall increase of 2%to 9%almost no change(within 2%up/down)small reduction of 2%to 9%significant reduction of 10%or aboveSECT

154、iON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC424.2.B.EmPLOYEE SALARYBased on Question 22“What has happened to employee salary of your company since the outbreak of COVID-19?”,figure 43 ranks the proportion of companies in services and manufacturing,and figure 44 ranks the companies by owner

155、ship.majority of companies reported almost no change to salary,with 56.4%of SOEs stating to hold salary within a 2%range.38.1%of foreign firms reported an across-the-board salary increase of 2%to 9%,and 9.5%of private enterprise even reported an across-the-board salary increase of 10%or more.manufac

156、turing services whole sampleFigure 43:cHanges to employee salary since tHe outBreak oF covid-19,By sectorsalary increase for some employeesacross-the-board salary increase of 10%or moreacross-the-board salary increase of 2%to 9%no salary change(within 2%up/down)salary cut of 2%to 9%for only senior e

157、xecutivesacross-the-board salary cut of 2%to 9%salary cut of 10%or above only for senior executivesacross-the-broad salary cut of 10%or above Foreign-owned private enterprise soeFigure 44:cHanges to employee salary since tHe outBreak oF covid-19,By ownersHip typesalary increase for some employeesacr

158、oss-the-board salary increase of 10%or moreacross-the-board salary increase of 2%to 9%no salary change(within 2%up/down)salary cut of 2%to 9%for only senior executivesacross-the-board salary cut of 2%to 9%salary cut of 10%or above only for senior executivesacross-the-broad salary cut of 10%or aboveS

159、ECTiON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC434.3.evaluatIon of PolIcy suPPort receIvedBased on Question 24“How do you rate the level of policy support(from the Chinese government)your company has received since the outbreak of COVID-19?”,we find that the average rating is 5.5 for the w

160、hole sample,with manufacturing industry a higher rating of 5.8 and service industry a lower rating of 5.3.Figure 46 shows the rating of Chinese governments support to firms by state-owned enterprises,private companies and foreign-owned companies.The average score of the whole sample by registration

161、types was 5.5(slightly lower than the 5.72 rating we received from previous survey on the rating of policy support to industry conducted in April 2020).Both state-owned companies and foreign-owned companies gave a score of 6.1.Private companies assigned a score of 5.2 only.By firm size we find that

162、rating of received policy support increases with firm size,reaching 6.7 for firms with 10,000 or more employees.However,micro firms with less than 10 employees reported a rating of only 4.3.Figure 45:rating oF policy support received By company since tHe outBreak oF covid-19,By sectorwhole sampleser

163、vicesmanufacturingFigure 46:rating oF policy support received By company since tHe outBreak oF covid-19,By ownersHip typesoeprivate enterpriseForeign-ownedSECTiON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC44Figure 47:rating oF policy support received By company since tHe outBreak oF covid-19

164、,By Firm siZe50,000 or above10,000 t0 49,9995,000 t0 9,9992,000 t0 4,9991,000 t0 1,999300 t0 99950 t0 29910 t0 490 t0 9SECTiON 4:ADjuSTmENTS TO THE imPACT FROm COViD-19 PANDEmiC45section 5CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA465.1.Most IMPortant factors consIdered for BusIness In chIna for 2021

165、Based on the first part of Question 26“For this year(2021),what factors does your company care the most regarding China business operations?(multiple answers possible)”,figure 48 shows the considerations of companies in service and manufacturing industries.for service sector,45.8%is concerned with“I

166、mproving/worsening of Chinas government policy towards my companys business”,followed by 38.7%concerned with“Tensions between China and the U.S.(and other Western countries)”and 31.9%with“Effectiveness of pandemic control outside China”.For manufacturing sector,44.6%is concerned with“Tensions betwee

167、n China and the U.S.(and other Western countries)”,followed by 38.5%concerned with“Effectiveness of pandemic control outside China”and 35.1%with“Improving/worsening of Chinas government policy towards my companys business”.Indicating that manufacturing sector is more affected by external conditions,

168、whereas service sector focuses more on internal business-specific policies.manufacturing servicesFigure 48:tHe most cared Factors regarding cHina Business operations in 2021,By sectorcoverage of covid-19 vaccination in chinaeffectiveness of pandemic control outside chinatensions between china and th

169、e u.s.(and other western countries)easing of restrictions on traveling into china and out of chinaeasing of restrictions on traveling within chinarecovery of the supply chain relied by my companys china businessimproving/worsening of chinas government policy towards my companys businessotherSECTiON

170、5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA47 Foreign-owned private enterpriseFigure 49 shows the considerations of private and foreign firms.We find that private firms care the most about“Improving/worsening of Chinas government policy towards my companys business”.The top three factors care by fo

171、reign firms are all related to external environment:“Tensions between China and the U.S.(and other Western countries)”,“Effectiveness of pandemic control outside China”,and“Easing of restrictions on traveling into China and out of China”.Figure 49:tHe most cared Factors regarding cHina Business oper

172、ations in 2021,By ownersHip typecoverage of covid-19 vaccination in chinaeffectiveness of pandemic control outside chinatensions between china and the u.s.(and other western countries)easing of restrictions on traveling into china and out of chinaeasing of restrictions on traveling within chinarecov

173、ery of the supply chain relied by my companys china businessimproving/worsening of chinas government policy towards my companys businessotherSECTiON 5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA485.2.Most IMPortant factors consIdered for BusIness In chIna for 2021-2025Based on Question 29“Looking for

174、ward,for the next 5 years(2021-2025),what aspects of China will have the most important impact on your companys business operations in China?(multiple Answers Possible)”,figure 50 shows the considerations of companies in service and manufacturing industries.Both service and manufacturing sectors car

175、e the most about the internal circulation.manufacturing sector also shows concern for Chinas relation with Western countries and Chinas independent innovation ability.manufacturing servicesFigure 50:tHe most important Factors considered on Business operations in cHina For 2021-2025,By sectorNote:1 s

176、urvey respondent in the service sector answered“other”to this question.prospects of chinas domestic consumption(so-called“internal circulation”)prospects of chinas further opening-up(so-called“external circulation”)chinas management of financial risks such as debt default riskchinas relation with we

177、stern countries especially the u.s.chinas building of independent research and innovation abilitychinas building of an independent supply-chain networkchinas building of 5g network,industrial internet,etc.(so-called“new infrastructure”)government&industry policiesSECTiON 5:CONFiDENCE iN BuSiNESS OPE

178、RATiONS iN CHiNA49 Foreign-owned private enterpriseFigure 51:tHe most important Factors considered on Business operations in cHina For 2021-2025,By ownersHip typeNote:2 survey respondents of private enterprises answered“other”to this question.prospects of chinas domestic consumption(so-called“intern

179、al circulation”)prospects of chinas further opening-up(so-called“external circulation”)chinas management of financial risks such as debt default riskchinas relation with western countries especially the u.s.chinas building of independent research and innovation abilitychinas building of an independe

180、nt supply-chain networkchinas building of 5g network,industrial internet,etc.(so-called“new infrastructure”)government&industry policiesSECTiON 5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA505.3.evaluatIon of chInas doMestIc and InternatIonal BusIness envIronMent over the Past fIve years(2016-2020)Ba

181、sed on Question 27“Looking back,for the past 5 years(2016-2020),how would you describe Chinas domestic business environment for your companys operations in China?”,figure 52 displays the evaluation by ownership type.70.8%of SOEs,64.2%of private firms,and 60.5%of foreign firms responded that domestic

182、 business environment improved.Among that,23.8%of private firms and 24.5%of SOEs felt that domestic business improved significantly,whereas only 18.7%of the foreign firms felt the same way.However,3.3%of private firms also expressed that domestic business environment worsened significantly for them,

183、whereas only 1.8%for SOEs and 1.4%for foreign firms.Figure 52:evaluation oF cHinas domestic Business environment in tHe past 5 years(2016-2020)improved significantlyimproved moderatelyimproved slightlyno changeworsened slightlyworsened moderatelyworsened significantlyother Foreign-owned private ente

184、rprise soeSECTiON 5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA51Based on Question 28“Looking back,for the past 5 years(2016-2020),how would you describe the international business environment for your companys operations in China?”,figure 53 displays the evaluation by ownership type.29.9%of private

185、firms expressed no change,28.2%of SOEs,and only 23.1%of foreign firms.29.2%of foreign firms,22.9%of private firms,and 24.6%of SOEs expressed that the overseas environment improved;47.0%of foreign firms,44.5%of private firms,and 41.8%of SOEs expressed that the overseas environment worsened.Private fi

186、rms showed more extreme responses with only 5.4%feeling a significant improvement and 8.5%feeling a significant deterioration.Figure 53:evaluatoin oF tHe international Business environment For operations in cHina in tHe past 5 years(2016-2020)Foreign-owned private enterprise soeimproved significantl

187、yimproved moderatelyimproved slightlyno changeworsened slightlyworsened moderatelyworsened significantlyno international Business/not influenced by international environmentotherSECTiON 5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA525.4.confIdence IndIces for BusIness oPeratIons In chIna for 2021 and

188、 2021-2025Based on Question 25“How confident are you that your business operations in China will be successful this year(2021)?In the next 5 years(2021-2025)?”,Figure 54 shows the confidence indices of state-owned enterprises,private companies and foreign-owned companies for this year and the next 5

189、 years,respectively.Companies on average have higher confidence level in the long term.Compared to the average confidence level of our last survey(whole sample average of 7.15 for 2020 and 7.87 for 2020-2025),the companies are on average more confident going forward.However,by ownership type we find

190、 that private companies become more confident while foreign-owned companies become less when we move from short term projections to long term.When we again compare with the average confidence level of foreign companies from the survey conducted in our previous survey(6.78 for 2020 and 7.66 for 2020-

191、2025),we find that the foreign companies on average are more confident than they were for both short and long term.The Chinese government should keep optimizing the investment and business environment for foreign companies and improve industrial policies to boost the confidence of foreign enterprise

192、s in Chinese economy and their recognition of business environment in China.Figure 54:rating oF conFidence level For successFul Business operations in cHina,2021 vs.2021-2025(lowest=0,HigHest=10)2021 2021-2025soeschinese private-owned enterpriseForeign firmswhole samplen=110n=738n=294n=1188SECTiON 5

193、:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA53By industry,we find that the manufacturing sector is on average more confident both in the short run and the long run.For the service sector,the most confident industry is“Environment&Public Facilities Management”,reporting a confidence level of 9.00,even

194、 higher than the most confident industry“Textiles&Clothings”(8.67)in manufacturing.The least confident industry among both sectors is“Education”,reporting only a level of only 6.87,much lower than the least confident industry“Papermaking&Printing”in manufacturing(7.40).For the confidence level of th

195、e next five years,“Environment&Public Facilities Management”continue to be the most confident industry(9.20)and the most confident industry for manufacturing is instead“Textiles&Clothing”(9.00).The least confident industry among both sectors is“Education”(7.20),with“Scientific Research&Technical Ser

196、vices”being a close second(7.23).“Papermaking&Printing”remains to be the least confident industry in manufacturing(7.60).Figure 55:rating oF conFidence level For successFul Business operations in cHina,2021 vs.2021-2025,service sector 2021 2021-2025environment&public Facilities managementtelecommuni

197、cations&information servicescatering,accommodation&travelprofessional services&Business servicesHealth care,medical&sanitationwholesale&retailconstruction&real estateWhole Sample of the Sectorculture,entertainment&recreationFinancial servicesautomobile related serviceslogistics,transportation&storag

198、escientific research&technical serviceseducationSECTiON 5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA54Figure 56:rating oF conFidence level For successFul Business operations in cHina,2021 vs.2021-2025,manuFacturing sector 2021 2021-2025textiles&clothingscivil engineering&constructioncommunications&e

199、lectronic productsrubber&plastics productsmachinery&equipmentpublic utilities(such as water and electricity supply)agriculture,Forestry,Husbandry,Fishing&miningconsumer productspharmaceutical products&medical devicesautomobile&transportation vehiclesWhole Sample of the Sectormetal&non-metallic produ

200、ctschemical&energy productspapermaking&printingSECTiON 5:CONFiDENCE iN BuSiNESS OPERATiONS iN CHiNA55section 6HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS566.1.adjustMents to BusIness and eMPloyee BenefIts6.1.A.ADjuSTmENTS TO BuSiNESS OPERATiONSBased on Q17“In 2020,what happened to your compa

201、ny and your companys health care products(pharmaceutical products,medical devices,etc.)or health care services(medical,sanitation,etc.)?”,we find that most of the firms have no related businesses and have no intentions to enter(66.2%),some even shrank the existing health-related businesses(3.5%).On

202、the other hand,22.8%of the firms showed interest in health-related businesses(including those that expanded existing businesses,entered,and intended to enter).figure 58 exhibits the adjustments by ownership type.There is a higher proportion of private enterprises that have no existing health-related

203、 businesses and no intention to enter(70.5%).SOEs and foreign firms seem to be more proactive in expanding health-related operations,with 20.1%of foreign firms and 18.2%of sOes expanding existing related businesses.Figure 57:cHanges to companys HealtH care products or services in 2020 manufacturing

204、services whole samplewe had no health-related business,and no intention to enter this businessour existing health-related business expanded in scaleour existing health-related business had no change in scalewe became a new entrant of the health-related businessour existing health-related business sh

205、rank in scalewe planned to enter the business but have not yet enteredotherSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS57Figure 58:cHanges to companys HealtH care products or services in 2020,By ownersHip type Foreign-owned private enterprise soewe had no health-related business,and

206、 no intention to enter this businessour existing health-related business expanded in scaleour existing health-related business had no change in scalewe became a new entrant of the health-related businessour existing health-related business shrank in scalewe planned to enter the business but have not

207、 yet enteredotherSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS58Figure 59:cHanges to companys HealtH care products or services in 2020,service sectorenvironment and public utilities managementprofessional services&Business servicesconstruction&real estateculture,entertainment&recreat

208、ioncatering,accommodation&travelFinancial serviceseducationwholesale&retailtelecommunications&information serviceslogistics,transportation&storageHealth care,medical&sanitationfrom figure 59 and 60,it is not surprising to see that the industries that are most active in expanding their health-related

209、 business were“Health Care,Medical&Sanitation”(44.9%)and“Pharmaceutical Products&Medical Devices”(48.4%).These two industries also showed the most variation with 15.4%and 21.1%respectively reporting a decline in scale.A high proportion of firms in“Financial Services”(22.9%)and“Logistics,Transportati

210、on&Storage”(20.7%)in service sector also expanded existing health-related businesses.for manufacturing sector,“Papermaking&Printing”(20.0%),“Chemical&Energy Products”(18.0%),and“Communications&Electronic Products”(15.6%)also exhibited noteworthy expansion.“Catering,Accommodation&Travel”exhibited the

211、 highest share of firms entering health-related business(8.0%),followed by“Telecommunications&Information Services”(7.4%).Among the manufacturing sector,33.3%of“Rubber&Plastics”entered health-related business,followed by“Public Utilities”(14.3%).our existing health-related business shrank in scale o

212、ur existing health-related business had no change in scale our existing health-related business expanded in scale we became a new entrant of the health-related businessSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS59Figure 60:cHanges to companys HealtH care products or HealtH care ser

213、vices in 2020,manuFacturing sector our existing health-related business shrank in scale our existing health-related business had no change in scale our existing health-related business expanded in scale we became a new entrant of the health-related businesscivil engineering&constructionrubber&plasti

214、csmetal&non-metallic productspapermaking&printingchemical&energy productspublic utilities(such as water and electricity supply)agriculture,Forestry,Husbandry,Fishing&miningcommunications&electronic productsmachinery&equipmentautomobile&transportation vehiclesconsumer productspharmaceutical products&

215、medical devicesSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS606.1.B.ADjuSTmENTS TO EmPLOYEE BENEFiTSBased on Question 23“What new measures has your company taken to safeguard employees health conditions?(Multiple Answers Possible)”,we find that almost all firms provided anti-virus su

216、pplies(94.3%),followed by promoting health-relevant knowledge(80.1%),and improved working environment(57.0%).figure 61 exhibits the measures by ownership type.sOes are more inclined to provide concrete assurances(such as providing anti-virus supplies,purchase insurances,and provide aid for serious i

217、llnesses),whereas foreign firms are more inclined to provide support for emotional well-being(such as improving working environment and provide psychological counseling).Some firms also provide other measures such as offering the option of flexible working location and purchase of insurances for fam

218、ily members.Figure 61:new measures taken By companies to saFeguard employees HealtH conditions(multiple answers possiBle),By ownersHip typeprovided anti-virus suppliespromoted health-relevant knowledgeimproved working environmentpurchased commercial insurancesprovided psychological counselingprovide

219、d aid for serious illness Foreign-owned private enterprise soeSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS616.2.Personal changes and adjustMents 6.2.A.CHANgES iN STRESS LEVELBased on Question 33“How did your stress level change under COVID-19 as compared with pre-COVID time?Please m

220、ove the cursor or tap on the scale.-5=largest decrease in stress level;+5=largest increase in stress level”,we find that the average rating of stress level change is 2.38,with 85%expressing an increase in stress level(28.1%indicating an increase of 3 in stress level),and 9.8%indicating no change in

221、stress level.figure 62 and 63 exhibits stress level by managing experience and managing position in the company.We find that stress level increases with managing experience,a level of 2.45 for those with experience of 20 years or more compared to 1.83 for those with experience less than 5 years.stre

222、ss levels are the highest for HR executives(2.96)and R&D executives(2.83),even higher than those with the principal decision-making role.Figure 62:stress level cHange under covid-19,By managing experience(-5=largest decrease;+5=largest increase)more than 20 years10-19 yearswhole sample5-9 yearsless

223、than 5 yearsSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS62By business operation characteristics,we find that private enterprises on average have a higher stress level(2.47),followed by SOEs(2.26)and foreign firms(2.09).By revenue change,stress level does not necessarily increase wit

224、h the magnitude of revenue drop.Figure 64:stress level cHange under covid-19,By ownersHip type(-5=largest decrease;+5=largest increase)Figure 63:stress level cHange under covid-19,By managing position(-5=largest decrease;+5=largest increase)Hr executiver&d executiveprincipal decision making roledepu

225、ty decision making rolemanufacturing,operations,logistic or engineering executiveFinance executivemarketing executive/sales executiveproject manager/Business development manager/product managerotherprivate enterprisesoeForeign-ownedSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS63Figur

226、e 65:stress level cHange under covid-19,By cHange in cHina revenue(-5=largest decrease;+5=largest increase)Figure 66:stress level cHange under covid-19,By cHange in overseas revenue(-5=largest decrease;+5=largest increase)increased by 25%or moreincreased by 10%to 24%increased by 2%to 9%stayed the sa

227、me(within 2%up/down)Fell by 2%to 9%Fell by 10%to 24%Fell by 25%to 49%Fell by 50%or moreincreased by 25%or moreincreased by 10%to 24%increased by 2%to 9%stayed the same(within 2%up/down)Fell by 2%to 9%Fell by 10%to 24%Fell by 25%to 49%Fell by 50%or moreSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONA

228、L ADjuSTmENTS64Figure 67:stress level cHange under covid-19,service sector(-5=largest decrease;+5=largest increase)automobile related servicescatering,accommodation&travelculture,entertainment&recreationeducationtelecommunications&information serviceslogistics,transportation&storageHealth care,medic

229、al&sanitationprofessional services&Business servicesservice sectorconstruction&real estatewholesale&retailFinancial servicesenvironment and public utilities managementtechnical servicesSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS65Figure 68:stress level cHange under covid-19,manuFac

230、turing sector(-5=largest decrease;+5=largest increase)textile&clothingpublic utilities(such as water and electricity supply)papermaking&printingcivil engineering&constructionconsumer productscommunications&electronic productspharmaceutical products&medical devicesautomobile&transportation vehiclesma

231、nufacturing sectormetal&non-metallic productsmachinery&equipmentchemical&energy productsrubber&plasticsagriculture,Forestry,Husbandry,Fishing&miningSECTiON 6:HEALTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS666.2.B.PERSONAL mEDiCAL AND HEALTH CONSumPTiONBased on Question 34“Under COVID-19,how did

232、you adjust your medical and health consumption?(Multiple Answers Possible)”,we find that most executives chose to increase spending on sports and fitness(57.5%),followed by adopting preventive measures(41.7%).27.5%reported almost no change in medical and health consumption pattern.The executives tha

233、t reported almost no change in their consumption patterns also are the ones that exhibit the lowest level of stress increase(2.19).Figure 69:adJustments to medical and HealtH consumption under covid-19(multiple answers possiBle),witH corresponding stress levelshare of executives ofdifferent consumpt

234、ion changesstress level changeincreased spending on commercial health insuranceincreased spending on sports and fitnessincreased consumption of health supplements and health foodsadopted preventive measures such as physical examination,early screening and vaccinationalmostno changeotherSECTiON 6:HEA

235、LTHCARE RELATED COmPANY AND PERSONAL ADjuSTmENTS67share of executives ofdifferent consumption changesstress level changesection 7CONCLuSiON68Based on the online survey we conducted from April 1st to 14th 2021 among company executives(95%are CeIBs alumni or participants)and 1,188 unique responses rec

236、eived in total,we analyzed the adjustments made to accommodate the impacts from COVID-19 pandemic on business operations both within and outside China.Our survey results continue to show that the pandemic gave a hard hit to the service sector,more than the impact on the manufacturing sector:17.5%of

237、service sector reported a 25%or more drop in revenue from business in China and only 7.5%of manufacturing sector.Among the service sector,“Catering,Accommodation&Travel”have the greatest number of firms reporting a drop of 25%or more,followed by“Education”and“Logistics,Transportation&Storage”.For th

238、e manufacturing sector,the three industries with most companies reported a revenue drop are“Agribusiness”,“Pharmaceutical Products”and“Consumer Products”.On the other hand,17.6%of service sector and 15.1%of manufacturing sector reported an increase of 25%or more in revenue,exhibiting a wide variatio

239、n in performances one often observes under uncertainty.“Logistics,Transportation&Storage”,“Telecommunications&Information Services”,and“Culture,Entertainment&Recreation”are the three industries in service with the biggest share of reported companies of 25%or more revenue increase;“Pharmaceutical Pro

240、ducts”,“Communications&Electronic Products”,and“Automobile&Transportation Vehicles”are the top three in manufacturing.for revenue in China,most companies felt the impact most sharply in 2020 Q1.This is true across manufacturing and service sectors and different ownership types.Regardless of the busi

241、ness sector or ownership type,we find similar proportion that reported no drop in revenue.For overseas revenue,companies in both manufacturing and service sectors felt the impact the most in 2020 Q2.Foreign firms also suffer greatly in 2020 Q3 and have a lower share of firms reporting no decline in

242、revenue(4.1%compared to 7.7%of private enterprises and 8.2%of SOEs).Among the firms that do not operate solely in China(671 firms),the biggest outside-China revenue drop occurred in U.S.and EU.For service sector,more firms reported a drop in U.S.(29.9%)than in EU(24.6%).For both regions,“Catering,Ac

243、commodation&Travel”have the greatest number of firms reporting a drop.For manufacturing sector,slightly more firms reported a drop in eu(32.8%)than in u.s.(29.9%).As for the speed of recovery,companies mainly reported a recovery of 80%or more in the second and third quarter of 2020 regardless of own

244、ership type.Slightly more private firms(8.0%)and foreign firms(7.1%)reported not yet recovered,as compared to sOes(6.4%).A higher proportion of service sector still have not recovered by 80%or more(9.6%),compared to the manufacturing sector(6.6%).Among the service sector,firms in“Education”and“Cater

245、ing,Accommodation&Travel”are struggling the most.For firms in manufacturing,“Agribusiness”and“Consumer Products”are the industries that are lagging behind.It is likely that the wider difference among service sectors in terms of their performance during the pandemic led to the heterogeneous recovery.

246、The recovery of business activities in services mainly depends on business modes.Industries in which online business dominates were less affected by the pandemic,like financial and information services.second,although the pandemic has been quickly brought under control in China and the economy has b

247、ounced back quickly,it still takes time for business activities to return to normal.Recovery depends heavily on whether supply chain was affected and whether business models had the flexibility to expand to online operation during lockdown.Most of the firms have almost no impact or only moderate neg

248、ative impact on domestic supply chain.For firms that experience a very large negative impact,we have 7.1%of private enterprises,compared to 4.1%of foreign firms,and only 1.8%of SOEs.On average,60.0%of manufacturing firms experienced a negative impact to their domestic supply chain,with“Civil Enginee

249、ring&Construction”reporting the biggest share of firms being affected.For overseas supply chain,only 14.9%of the firms reported almost no impact,and 10%reported a negative impact of 20%or more.Foreign firms are affected more severely than their counterparts.On average,64.1%of manufacturing firms exp

250、erienced a negative impact to their overseas supply chain,with“Communications&Electronic Products”and“Automobile&Transportation Vehicles”having the biggest share of firms being affected.Before the outbreak,majority of the firms have less than 40%of business done online,regardless of ownership types.

251、Private enterprises have a larger share of firms conducting 80%or more of their business online in 2019 already(11.9%)and increased slightly after the outbreak(12.5%).We find that the share of firms that have 4%or less business done online have dropped:63.3%to 53.0%for private firms,66.3%to 57.8%for

252、 foreign firms,and 56.4%to 43.6%for SOEs.For conducting 5%to 19%of businesses online,SOEs have increased significantly from 21.8%to 31.8%.SECTiON 7:CONCLuSiON69All industries exhibited a migration to businesses online.On average,55.3%of the service sector had 4%or less online operations in 2019,wher

253、eas only 42.5%in 2021.for the manufacturing sector,76.6%had 4%or less online operations in 2019,and dropped to 68.8%in 2021.Among the service sector,the biggest switch from offline to online is“Education”(64.5%had 4%or less online in 2019 compared to 41.9%in 2021),followed by“Culture,Entertainment&R

254、ecreation”(46.4%to 28.6%),and“Construction&Real Estate”(82.9%to 67.1%).Among the manufacturing sector,the biggest switch from offline to online is“Consumer Products”(51.4%to 33.3%),followed by“Agribusiness”(91.3%to 78.3%).The unprecedented pandemic shock had huge impact on the labor market.We contin

255、ue to follow how firms respond through changes in employee size and salary.As contrast to our survey conducted last April with widespread reduction in recruitment for 2020,less than 10%reported significant reduction of employee size across all ownership types in our survey this year.Majority of firm

256、s reported almost no change in human resource.We find 57.3%of SOEs chose to keep employee size constant,resulting in smaller reductions compared to private and foreign firms,but also less expansion as well.41.7%of private firms reported to have increased hiring.Both manufacturing and service sector

257、have approximately 41%of firms reporting almost no change to employee size.manufacturing sector was slightly more aggressive in recruiting(39.3%reported an increase)compared to service sector(38.1%).The reasons might be that these companies still expect positive growth or have found new sources of g

258、rowth amid the post-pandemic economy.majority of companies reported almost no change to salary,with 56.4%of sOes stating to hold salary within a 2%range.38.1%of foreign firms reported an across-the-board salary increase of 2%to 9%,and 9.5%of private enterprise even reported an across-the-board salar

259、y increase of 10%or more.The rating figures to Chinese governments support to firms since the pandemic showed that the average of the whole sample by registration types was 5.5(highest=10),slightly lower than the rating for governments support to industry in our previous survey(conducted in April 20

260、20).Both state-owned companies and foreign-owned companies gave a score of 6.1,however,private companies only assigned a score of 5.2.manufacturing industry gave a higher-than-average rating of 5.9,while service industry gave a rating of 5.3.By firm size we find that rating of received policy suppor

261、t increases with firm size,reaching 6.7 for firms with 10,000 or more employees.However,micro firms with less than 10 employees reported a rating of only 4.3.The biggest concerns for business operations in China for 2021 by the service sector is Chinas government policy towards the companys business

262、.Tensions between China and other Western countries and effectiveness of pandemic control outside China are also top factors concerned by the sector.The top three concerns for manufacturing sector are the same,however companies in manufacturing are most concerned with tensions between China and othe

263、r Western countries.Indicating that manufacturing sector is more affected by external conditions,whereas service sector focuses more on internal business-specific policies.Private firms care the most about Chinas government policy towards the companys business.The top three factors care by foreign f

264、irms are all related to external environment,including easing of restrictions on traveling into China and out of China.for business operations in China for 2021-2025,both service and manufacturing sectors care the most about the internal circulation.Chinas relation with Western countries is another

265、top concern.manufacturing sector also shows concern for Chinas independent innovation ability,whereas service sector considers the prospect of Chinas external circulation more.These factors are the top considerations for private firms and foreign firms as well:69.2%of private firms care about Chinas

266、 internal circulation(65.0%of foreign firms),67.7%of foreign firms consider Chinas relation with Western countries as an important factor for future business in China.70.8%of SOEs,64.2%of private firms,and 60.5%of foreign firms responded that domestic business environment improved.Among that,23.8%of

267、 private firms and 24.5%of SOEs felt that domestic business improved significantly,whereas only 18.7%of the foreign firms felt the same way.However,3.3%of private firms also expressed that domestic business environment worsened significantly for them,whereas only 1.8%for SOEs and 1.4%for foreign fir

268、ms.For the international environment of business operation in China,29.9%of private firms expressed no change,28.2%of SOEs,and only 23.1%of foreign firms.29.2%of foreign firms,22.9%of private firms,and 24.6%of SOEs expressed that the overseas environment improved;47.0%of foreign firms,44.5%of privat

269、e firms,and 41.8%of SOEs expressed that the overseas environment worsened.Private firms showed more extreme responses with only 5.4%feeling a significant improvement and 8.5%feeling a significant deterioration.SECTiON 7:CONCLuSiON70We composed the confidence indices for business operations in China

270、in 2021 and in 2021-2025.The index ranges from 0 to 10,with 10 being the highest rating.Compared to the average confidence level of our last survey,the companies are more confident going forward.It is noteworthy that foreign companies have lower confidence indices than Chinese-owned companies,and th

271、eir confidence index for the next 5 years is lower than that for this years survey.Among Chinese-owned companies,state-owned enterprises are more confident than private companies.Private companies became more confident when we move from short term projections(7.86)to long term(8.00).The Chinese gove

272、rnment should keep optimizing the investment and business environment for both private enterprises and foreign companies.Continue improving industrial policies to boost the confidence of foreign enterprises in Chinese economy and their recognition of business environment in China.We also analyzed th

273、e confidence indices of service and manufacturing companies.We saw that the confidence index of service industry for business operations in China for 2021 is 7.77 on average,lower than 8.07 of manufacturing(both higher than the confidence level polled from last April).For the service sector,the most

274、 confident industry is“Environment&Public Facilities Management”,reporting a confidence level of 9.00,even higher than the most confident industry“Textiles&Clothings”(8.67)in manufacturing.The least confident industry among both sectors is“Education”,reporting only a level of only 6.87,much lower th

275、an the least confident industry“Papermaking&Printing”in manufacturing(7.40).No matter in services or manufacturing,companies are more confident in medium and long-term than in short-term.The confidence level of the service industry for the next 5 years is 7.83 on average,higher than that for 2021.Th

276、e confidence index of the manufacturing for the next 5 years is 8.09,higher than its index for 2021 as well as the long-run confidence level of services.“Environment&Public Facilities Management”continue to be the most confident industry(9.20)and the most confident industry for manufacturing is inst

277、ead“Textiles&Clothing”(9.00).The least confident industry among both sectors is“Education”(7.20),with“Scientific Research&Technical Services”being a close second(7.23).“Papermaking&Printing”remains to be the least confident industry in manufacturing(7.60).We expect that Chinese economy will continue

278、 to expand and business operations will return to normal.In the medium to long term,China will remain the most economically active region in the world,and the survey results highly suggest companies confidence.since the COVID-19 pandemic has a unique effect on the healthcare industry and personal he

279、althcare consumption,we dedicated a section to discuss health-related business adjustments.Most of the firms have no related businesses and have no intentions to enter(66.2%),some even shrank the existing health-related businesses(3.5%).On the other hand,22.8%of the firms showed interest in health-r

280、elated businesses(including those that expanded existing businesses,entered,and intended to enter).The industries that are most active in expanding health-related business were“Health Care,Medical&Sanitation”(44.9%)and“Pharmaceutical Products&Medical Devices”(48.4%).These two industries also showed

281、the most variation with 15.4%and 21.1%respectively reporting a decline in scale.There is a higher proportion of private enterprises that have no existing health-related businesses and no intention to enter(70.5%).sOes and foreign firms seem to be more proactive in expanding health-related operations

282、,with 20.1%of foreign firms and 18.2%of SOEs expanding existing related businesses.The unprecedented pandemic and lockdown measures have brought abrupt and profound changes to life as we know it.The average rating of stress level change is 2.38,with 85%expressing an increase in stress level(28.1%ind

283、icating an increase of 3 in stress level),and 9.8%indicating no change in stress level.We find that stress level increases with managing experience,a level of 2.45 for those with experience of 20 years or more compared to 1.83 for those with experience less than 5 years.stress levels are the highest

284、 for HR executives(2.96)and R&D executives(2.83),even higher than those with the principal decision-making role.Private enterprises on average have a higher stress level(2.47),followed by sOes(2.26)and foreign firms(2.09).We find that stress level does not necessarily increase with the magnitude of

285、revenue drop.Almost all firms provided anti-virus supplies(94.3%),promoted health-relevant knowledge(80.1%),and improved working environment(57.0%).sOes are more inclined to provide concrete assurances(such as providing anti-virus supplies,purchase insurances,and provide aid for serious illnesses),w

286、hereas foreign firms are more inclined to provide support for emotional well-being(such as improving working environment and provide psychological counseling).Some firms also provide measures such as offering the option of flexible working location and purchase of insurances for family members.For p

287、ersonal health-related consumptions,most executives chose to increase spending on sports and fitness(57.5%)and adopted preventive measures(41.7%).executives that reported almost no change in their consumption patterns(27.5%)are also the ones that exhibit the lowest level of stress increase(2.19).SEC

288、TiON 7:CONCLuSiON71AppendixQuESTiONNAiREAttached is the full text of the online survey on the impact of COVID-19 pandemic on business operations in China.72Q0 Did you participate in last Aprils survey on COViD-19s impact on business in China?yes,I participated no,I did not I do not remember Q1 What

289、is the ownership structure of your company?Wholly state-Owned Chinese enterprise Wholly Private-Owned Chinese enterprise mixed-Ownership Chinese enterprise(majority state-Owned)mixed-Ownership Chinese enterprise(majority Private-Owned)Wholly foreign-Owned enterprise foreign joint Venture(majority fo

290、reign-Owned)foreign joint Venture(minority foreign-Owned)Other(please specify):_Q2 is your company listed?yes no Q2.a What is your companys stock code?_Q2.b Where is your company listed?shanghai(China)shenzhen(China)Hong kong(China)Taiwan(China)singapore japan Australia us uk germany Other(please sp

291、ecify):_Q3 Your companys biggest foreign ownership is from:Hong kong(China)Taiwan(China)Asia-Pacific(please type the country name):_ Africa(please type the country name):_europe(please type the country name):_u.s.Americas(excluding u.s.),please type the country name:_Other(please specify):_APPENDiX:

292、QuESTiONNAiRE73Q4 Which sector is your companys main business?services manufacturing Both services and manufacturing Q5a in which service industry?Health Care,medical&sanitation Logistics,Transportation&storage Telecommunications&Information services Wholesale&Retail education financial services Cat

293、ering,Accommodation&Travel Culture,entertainment&Recreation Construction&Real estate Professional services&Business services Other services(please specify):_Q5b in which manufacturing industry?Consumer Products Pharmaceutical Products&medical Devices Automobile&Transportation Vehicles machinery&equi

294、pment Communications&electronic Products Agriculture,forestry,Husbandry,fishing&mining Public utilities(such as water and electricity supply)Chemical&energy Products Papermaking&Printing metal&non-metallic Products Other manufacturing(please specify):_Q6 Compared with other companies in the same ind

295、ustry,your companys main products/services belong to:High-end mid-end Low-end Both high-end&mid-endBoth mid-end&low-end Both high-end&low-end All range from low,middle to high Other(please specify):_Q7 Your companys main clients in China are:Individuals(B2C)Companies/Organizations(B2B)Both individua

296、ls(B2C)and companies/organizations(B2B)We do not have Chinese customers Other(please specify):_APPENDiX:QuESTiONNAiRE74Q8 What is the contribution of business-in-China to your companys 2020 revenue?100%(my company operates only in China)75%to 99%50%to 74%25%to 49%0%to 24%Other(please specify):_Q9 Co

297、mpared to 2019,your companys 2020 revenue from business-in-China:fell by 50%or more fell by 25%to 49%fell by 10%to 24%fell by 2%to 9%stayed the same(within 2%up/down)increased by 2%to 9%increased by 10%to 24%increased by 25%or more Other(please specify):_Q10 Compared to 2019,your companys 2020 reven

298、ue from business-outside-China:fell by 50%or more fell by 25%to 49%fell by 10%to 24%fell by 2%to 9%stayed the same(within 2%up/down)increased by 2%to 9%increased by 10%to 24%increased by 25%or more Other(please specify):_Q11 Compared to 2019,which region(s)did your companys revenue drop the most in

299、2020?(multiple Answers Possible)u.s european union China(mainland)Hong kong(China)Taiwan(China)AseAn(Indonesia,malaysia,Philippines,Thailand,singapore,Brunei,Cambodia,Laos,myanmar,Vietnam)japan and korea India Australia Russia,Central and eastern european Countries none of the above APPENDiX:QuESTiO

300、NNAiRE75Q12 Looking back,in 2019 prior to the outbreak of COViD-19,what percentage of your China business was done online?0%to 4%5%to 19%20%to 49%50%to 79%80%or above Q13 As of today in 2021,what percentage of your China business is done online?0%to 4%5%to 19%20%to 49%50%to 79%80%or above Q14 in whi

301、ch quarter did your companys China operating revenue drop the most?(multiple Answers Possible)Last year(2020)Quarter 1 Last year(2020)Quarter 2 Last year(2020)Quarter 3 Last year(2020)Quarter 4 2021 Quarter 1 Other(please specify):_Q15 in which quarter did your companys outside-China operating reven

302、ue drop the most?(multiple Answers Possible)Last year(2020)Quarter 1 Last year(2020)Quarter 2 Last year(2020)Quarter 3 Last year(2020)Quarter 4 2021 Quarter 1 Other(please specify):_Q16 in which quarter did your companys China operations recover by 80%or more for the first time?still not recovered b

303、y 80%or more 2021 Quarter 1 Last year(2020)Quarter 4 Last year(2020)Quarter 3 Last year(2020)Quarter 2 Last year(2020)Quarter 1 Other(please specify):_APPENDiX:QuESTiONNAiRE76Q17 in 2020,what happened to your company and your companys health care products(pharmaceutical products,medical devices,etc)

304、or health care services(medical,sanitation,etc)?We had no health-related business,and no intention to enter this business We planned to enter the business but have not yet entered We became a new entrant of the health-related business Our existing health-related business expanded in scale Our existi

305、ng health-related business had no change in scale Our existing health-related business shrank in scale Other(please specify):_Q18 How did COViD-19 affect the within-China supply chain relied by your company?Very large negative impact(affecting 20%or more)Large negative impact(affecting 10%to 19%)mod

306、erate negative impact(affecting 2%to 9%)Almost no impact(within 2%up/down)Positive impact on supply chain within China relied by my company Our company does not rely on supply chain within China Other(please specify):_Q19 How did COViD-19 affect the overseas(outside China)supply chain relied by your

307、 company?Very large negative impact(affecting 20%or more)Large negative impact(affecting 10%to 19%)moderate negative impact(affecting 2%to 9%)Almost no impact(within 2%up/down)Positive impact on the overseas supply chain relied by my company Our company does not rely on overseas supply chain Other(p

308、lease specify):_Q20 How many employees in China does your company hire at present?0 to 9 10 to 49 50 to 299 300 to 999 1,000 to 1,999 2,000 to 4,999 5,000 to 9,999 10,000 to 49,999 50,000 or above APPENDiX:QuESTiONNAiRE77Q21 What has happened to your companys employee size since the outbreak of COVi

309、D-19?Significant reduction of 10%or above small reduction of 2%to 9%Almost no change(within 2%up/down)small increase of 2%to 9%Large increase of 10%or above Q22 What has happened to employee salary of your company since the outbreak of COViD-19?Across-the-broad salary cut of 10%or above salary cut o

310、f 10%or above only for senior executives Across-the-board salary cut of 2%to 9%salary cut of 2%to 9%for only senior executives no salary change(within 2%up/down)Across-the-board salary increase of 2%to 9%Across-the-board salary increase of 10%or more Other(please specify):_Q23 What new measures has

311、your company taken to safeguard employees health conditions?(multiple Answers Possible)Provided anti-virus supplies Improved working environment Promoted health-relevant knowledge Provided psychological counseling Purchased commercial insurances Provided aid for serious illness Other(please specify)

312、:_Q24 How do you rate the level of policy support(from the Chinese government)your company has received since the outbreak of COViD-19?Please move the cursor or tap on the scale.0=lowest support;10=highest support0 1 2 3 4 5 6 7 8 9 10Level of policy support(from the Chinese government)your company

313、has received since the outbreak of COVID-19()Q25 How confident are you that your companys business operations in China will be successful this year(2021)?in the next 5 years(2021-2025)?Please move the cursor or tap on the scale.0=lowest confidence;10=highest confidence0 1 2 3 4 5 6 7 8 9 10Confidenc

314、e in my companys business operations in China this year(2021)()Confidence in my companys business operations in China within the next 5 years(2021-2025)()APPENDiX:QuESTiONNAiRE78Q26 For this year(2021),what factors does your company care the most regarding China business operations?(multiple Answers

315、 Possible)Coverage of COVID-19 vaccination in China effectiveness of pandemic control outside China Tensions between China and the u.s.(and other Western countries)easing of restrictions on traveling within China easing of restrictions on traveling into China and out of China Recovery of the supply

316、chain relied by my companys China business Improving/worsening of Chinas government policy towards my companys business Other(please specify):_Q27 Looking back,for the past 5 years(2016-2020),how would you describe Chinas domestic business environment for your companys operations in China?Improved s

317、ignificantly Improved moderately Improved slightly no change Worsened slightly Worsened moderately Worsened significantly Other(please specify):_Q28 Looking back,for the past 5 years(2016-2020),how would you describe the international business environment for your companys operations in China?Improv

318、ed significantly Improved moderately Improved slightly no change Worsened slightly Worsened moderately Worsened significantly Our company operate in China only and is not affected by changes of international business environment Other(please specify):_APPENDiX:QuESTiONNAiRE79Q29 Looking forward,for

319、the next 5 years(2021-2025),what aspects of China will have the most important impact on your companys business operations in China?(multiple Answers Possible)Prospects of Chinas domestic consumption(so-called internal circulation)Prospects of Chinas further opening-up(so-called external circulation

320、)Chinas management of financial risks such as debt default risk Chinas relation with Western countries especially the u.s.Chinas building of independent research and innovation ability Chinas building of an independent supply-chain network Chinas building of 5G network,industrial internet,etc.(so-ca

321、lled“New Infrastructure”)national and industry policies Other(please specify):_Q30 What is your position in the company(please choose the closest to your position)?Principal decision-making role(CeO/gm/main Owner/main Partner/Chief Representative)Deputy decision making role(VP/Vice gm/Director/Assis

322、tant of gm)Project manager/Business Development manager/Product manager HR executive manufacturing,Operations,Logistics or engineering executive marketing executive/sales executive finance executive R&D executive Other(please specify):_Q31 Whats your gender?female male I do not want to disclose.Q32

323、How many years of management experience do you have?Less than 5 years 5-9 years 10-19 years more than 20 years Q33 How did your stress level change under COViD-19 as compared with pre-COViD time?Please move the cursor or tap on the scale-5=largest decrease in stress level;+5=largest increase in stre

324、ss level-5 -4 -3 -2 -1 0 1 2 3 4 5my stress level decreased or increased()APPENDiX:QuESTiONNAiRE80Q34 under COViD-19,how did you adjust your medical and health consumption?(multiple Answers Possible)Almost no change Increased consumption of health supplements and health foods Increased spending on s

325、ports and fitness Increased spending on commercial health insurance Adopted preventive measures such as physical examination,early screening and vaccination Other(please specify):_Q35 Which CEiBS Program have you attended before or are attending currently?Open Program(AMP/CEO/CFO/CHO/CMO etc.)or Company Specific Program(CSP)emBA fmBA gemBA HemBA mBA I have not yet attended any CeIBs programAPPENDiX:QuESTiONNAiRE