Top US companies operating in China revealed that their businesses are improving in the country despite the pandemic. Investors in China are also watching the economic recovery of the country as the United States economy continues to struggle. Although the US economy remains uncertain about the long-term effects of the pandemic to its economy, some states have opted to reopen their jurisdictions for 'business as usual.'
According to CNN Business, recent earnings reports from US firms with a significant presence in China generated positive outcomes. Data released by China also hints of an economic rebound, but some investors and economists remain doubtful about the veracity of information released. Nevertheless, executives of large US and European businesses operating in the country confirm the positive connotations released by China. However, some claim that they remain cautious about signs of optimism.
The chief financial officer of Levi Strauss Harmit Singh shared in a conference call with analysts earlier this month that the company has gained earnings in April. He also noted that consumers have started to resume their normal behavior showing that demand for the company's products has started to rise in Wuhan. He added that traffic is still lower than that of previous years, but the reopening of the company's stores in China improved its performance.
Singh also noted that sales for Levi Strauss also improved substantially and consistently per week since the reopening of its branches in China last March. Digital sales were also revealed to have improved compared to values in 2019. Finally, Levi Strauss's profit margins were also higher this month.
Another US company operating in China is the industrial tools maker Snap-On. The company's CEO Nicholas Pinchuk shared with analysts that its investor earnings have also improved this month. He added that since restaurants started to open, consumer behavior and purchasing trends also increased.
This April, big bank State Street claimed that its operations in Hangzhou are also reverting to a normal routine. The company has reinstated 75 to 85 percent of its workers and has improved the company's performance since mid-March.
According to the CEO of State Street Ronald Philip O'Hanley, Chinese citizens continue to observe regulatory measures imposed by the government to prevent the spread of the pandemic. He noted that more people are observing a typical working environment with masks on, and establishments continue to impose temperature checks on consumers and employees alike. He added that the precautionary measures and consumer behavior are most likely to last for the rest of the year. He finished by saying that business conditions in China have been gradually better since the pandemic shook China's economy.
