BEIJING, CHINA - MediaOutReach - 29 January 2021 - Business confidence in Mainland China is upbeat,with 71 per cent of surveyed professionals expecting their company'sprofit will remain the same or increase in 2021.  

CPA Australia's annual Mainland ChinaEconomic and Business Sentiment Survey shows that despite concerns over slowing globaleconomic growth caused by the COVID-19 pandemic, 64 per cent of surveyed accountingand finance professionals forecast their company will maintain or increase itsheadcount this year.

The survey results reflect that businessesin Mainland China are showing high levels of confidence and believe that expectationsfor a global economic recovery, universallyavailable COVID-19 vaccines and improved China-US relations will have apositive impact on Mainland China's economy in 2021."

Innovation and technology

The survey results find MainlandChinese businesses are focused on enhancing innovation capabilities. Many surveyrespondents expect their business to innovate in the areas of products andservices, customer experience and business processes. More than half expecttheir business will slightly or significantly increase investment into newtechnologies, up seven percentage points from 2020.

The results also indicatethat most businesses in Mainland China aremaking investments in innovation and technology that will enable them to takeadvantage of long-term growth opportunities in the domestic market and to stayahead of competitors through greater use of technology, improved productivityand better business processes.

Tax relief and fees reduction

The survey results find thattax relief and fee reductions are key measures supporting businessesthrough challenging times. With tax andfee cuts in Mainland China totaling over 2.5 trillion yuan in 2020, 79 per centof surveyed accounting and finance professionals stated that these measures were beneficial to theirbusiness in 2020. More than half stated that the greatest benefit of thesemeasures was a reduction in the overall tax burden.

In addition, the survey resultsshow strong support for the continuation ofthe government's tax reform program, with most respondents indicating that individualincome tax (65 per cent), corporate income tax (63 per cent), and value-addedtax (49 per cent) should be the major focus of tax reforms in 2021.

Exploring new markets

Amid global trade tensions, many MainlandChinese businesses are optimistic that the signing of the RegionalComprehensive Economic Partnership (RCEP) will positively impact the MainlandChina's economy in 2021.

Accordingto the survey, 38 per cent of respondents expect the signing of RCEPwill create more trade opportunities for Chinese businesses, 23 per centbelieve it will create new investment opportunities for Chinese businesses and17 per cent believe that it will increase collaboration with other countries.

Download Report onCPA Australia's Mainland China Economic and Business Sentiment Survey 2021

About CPA Australia

CPA Australia is one of the world's largestaccounting bodies with more than 166,000members working in 100 countries and regions around the world, and more than25,000 members working in senior leadership positions. It has established astrong membership base of more than 19,000in the Greater China region.