Rising labor costs and economic slowdown were listed as the top business risks in China. A shortage of qualified employees and managers are also seen as major risks.

"In the fourth quarter last year, we did see lower profits and there was concern about how the Chinese economy was performing. The last several months' data has been more positive," Murck said.

The next few months would be a very important time to see the new leadership's roadmap for development, he said.

Some very positive policy statements have already been made, he added.

For example, the comments made by Premier Li Keqiang and others about inclusive urbanization are very important. "Urbanization will be a long-term positive driver of economic growth and social development," he said.

In addition, Li has said that he hopes to reduce the number of approvals needed for investments by one-third during his first five years in office.

The survey added a number of new questions about Internet usage and cyber security since last year.

About 38 percent of surveyed companies said they are shifting resources or services to cloud computing, up from 31 percent last year.

lanlan@chinadaily.com.cn

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