China tops APEC picks for investment: survey

China tops Asia-Pacific CEOs' picks for investments in the next three to five years, followed by Indonesia and the United States, according to a survey of 500 business leaders.
Enjoying an almost infinite supply of cheap labour, easily obtained credit and an economy that never stopped running, many multinational corporations struck gold by helping turn a one-time economic backwater into the world's factory floor that churns out everything for everywhere.
But as GDP growth slowed, wages surged and financial risks increased, economists warned the world's second largest economy, the engine driving global growth, could be losing steam.
According to the Price waterhouse Coopers (PwC), the CEOs in Asia-Pacific Economic Cooperation (APEC) countries, however, still think the Chinese economy is best prepared to handle changes, describing macroeconomic stability and regulatory consistency the most important qualities that help an economy bounce back from disruption.

Despite signs of an economic slowdown and capital outflows, the PwC study found 68 per cent of CEOs are planning to increase investments.
Over the next year, executives believe rapid urbanisation, the expanding middle-class and a burgeoning demand for infrastructure will continue to generate new growth, the study said today.

"China has been recognised by global CEOs as a key destination for business investment in the future, thanks to its competitive production costs and growing technological skills," said David Wu, PwC Beijing senior partner.
"China understands the need for urbanisation and greater investment in infrastructure. This complements the desire for environmentally friendly and low-carbon projects outlined by the National Congress as part of the 12th Five-Year Plan," state-run Xinhua quoted Wu as saying.

The survey of nearly 500 business leaders on their attitudes towards doing business in the region for the study titled 'Towards resilience and growth: Asia Pacific business in transition' also found that confidence among Asia-Pacific- based executives is on the rise.
About 87 per cent of the CEOs surveyed said middle-income consumers will influence their growth strategies.
Nearly half of investment increases will centre around new product development, services and distribution capabilities.
A quarter of CEOs plan "significant" changes to product mixes, distribution, brand and customer service strategies.
The survey also found regulatory inconsistencies among Asia-Pacific economies are holding back more investment in the region.

A fifth of CEOs said they were "highly likely" to invest more if rules concerning intellectual property, corporate governance and services were harmonised across the region.