HONG KONG, Oct. 8, 2015 /PRNewswire/ -- Multinational company leaders remain optimistic about their operations in China and expect good profitability there, but that they also anticipate the rate of business growth will continue to slow down -- according to a new study by Heidrick & Struggles (NASDAQ: HSII), the premier provider of executive search, leadership consulting and culture shaping services worldwide, in cooperation with AmCham Hong Kong.
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The study, "Managing in China's 'New Normal' 2015," included input from 119 multinational senior executives responsible for China operations with 58% of respondents' companies having a workforce of more than 1,000 employees.
"Business operating conditions in China are more challenging than in previous years. Apart from rising costs and direct competition, the game is getting tougher as multinational companies (MNCs) see a continued improvement in the manufacturing quality of domestic Chinese companies, which have begun operating in global market sectors and offering competitive pricing," said Seth Peterson, Partner in Heidrick & Struggles' Industrial Practice. "The Chinese companies are benefiting from immature capital market, allowing them to establish practices without government intervention, or to simply benefit from government support."
According to the report, MNCs remain confident about operating in China, yet the market conditions remain challenging and they are anticipating slower growth:
In addition, two trends emerged from the survey:
"As China has entered into a new paradigm, foreign companies and their leaders need to get used to heightened competition, greater complexity and increased uncertainty, requiring them to think and act more quickly," Peterson said. "The 'new normal' environment will lead to increased competition for talent with domestic Chinese enterprises, but measures designed to steady economic growth could reduce the level of job-hopping, especially among key talent, creating room to develop talent pipelines."
About Heidrick & Struggles
Heidrick & Struggles (Nasdaq: HSII) serves the executive talent and leadership needs of the world's top organizations as the premier provider of leadership consulting, culture shaping and senior-level executive search services. Heidrick & Struggles pioneered the profession of executive search more than 60 years ago. Today, the firm serves as a trusted advisor, providing integrated leadership solutions and helping its clients change the world, one leadership team at a time. www.heidrick.com
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