(Yicai Global) April 11 -- More than 70 percent of foreign companies that operate in China are keen on maintaining their supply chains in the world’s second-largest economy and continuing to explore the market, according to a recent survey.

Seventy of the 100 foreign companies with business in China that Price Waterhouse Coopers Consulting recently polled have confidence in China and are not planning to move their production or purchase departments outside the country. Eighteen are considering exiting the market and 12 have already decided to do so.

Of the firms that plan to remain in China, 84 percent said it is mainly because of its huge market size. Sophisticated industry chains and associated facilities, infrastructures, supply chain agility, rich human resources, and high digitalization of industry and commerce are the other top reasons.

“The Chinese government is optimizing the business environment and expanding market access to strengthen China’s advantage in the global supply chain,” Gabriel Wong, head of PwC China’s Inbound Outbound strategic market initiative, told Yicai Global. “We believe multinationals will enjoy such benefits and have more confidence and expectations.”

Overseas companies that have moved or are planning to move outside China have chosen Vietnam, India, and Indonesia as their top three destinations because they all have large populations, huge markets, and abundant labor forces.

Although China’s factor cost is much higher than in other Southeast Asian countries, it still attracts players from the global manufacturing industry thanks to its high labor efficiency, strong logistics, and low tariffs.

“Multinational companies may still adjust and disperse their supply chain because of the global environment,” Wong said. “But as the world’s second-largest market, China’s advantage is still attractive to foreign capital.”

China is deepening its relations with countries that signed the Regional Comprehensive Economic Partnership agreement, Wong noted, adding that China is in a supply chain transition phase, so it has many opportunities to cooperate with Southeast Asia.

Editor: Futura Costaglione