Foreign Investors in China Advised to Conduct Scenario Planning

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Nov. 20 – A China-based consulting firm has released a report advising foreign investors in the country to engage in scenario planning as a way of bracing itself for the possible economic situations that may arise in the near future.

APCO Worldwide in their report called, A Gathering Storm? China’s Growth Prospects and the Need for Scenario Planning, said that although a slowdown in China’s economy could make company operations more difficult it could also provide companies with an excellent chance to strengthen their operations in the country.

The report went on to say that the Chinese government is re-evaluating the latest policies and regulation that have restricted foreign investment to encourage growth; a perfect example being the recent Anti-Monopoly Law.

The firm said that while it feels positive about China’s GDP growth, short term risk remains therefore companies that wish to maintain the growth of their Chinese operations are well-advised to be open to the possibility of a turn around of positive trends next year.

APCO Worldwide said that companies should already prepare a detailed scenario planning that will allow them to respond well to conditions that may present itself during the ongoing global financial crisis.

APCO Worldwide is a global consulting firm and a leading provider of corporate advisory, government affairs and strategic communication services in China. The full eight-page report can be found here.