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A shortage of qualified managers is the fastest-growing area of risk confronting US companies' Chinese operations, according to a survey.

The concern has arisen even though many of the companies say they have been doing profitable business in China.

One of the largest factors in the managerial shortage is the country's air pollution.

The latest survey by the American Chamber of Commerce in China, released on Wednesday, shows that the proportion of companies reporting that air quality is an obstacle to recruiting and retaining senior executives rose to nearly half.

In its 2014 Business Climate Survey, conducted by AmCham China with 365 of its members in November and December, 36 percent of the respondents, compared with 30 percent last year, viewed the shortage of qualified managers as a risk to their Chinese operations.

The lack of talent represented the most significant rise among all the risk factors in the survey.

Forty-eight percent of the companies in this year's survey, compared with 34 percent last year, said that poor air quality is an obstacle to recruiting and retaining senior executives.

"The air quality concerns may be an increasingly important factor," the report said.

For the second consecutive year, respondents ranked increasing labor costs as the top business challenge, followed by inconsistent regulatory interpretation and unclear laws, and shortages of qualified employees.

More than 80 percent of the companies feel that China is losing its competitive advantages to varying degrees due to rising costs.

But companies remain optimistic about the business climate in China. Forty-eight percent regard the country as a top-three investment priority, while 20 percent regard it as the No 1 investment priority.

Questions:

1. What is the fastest growing area of risk confronting US companies’ Chinese operations, according to a survey?

2. What is one of the largest factors in the managerial shortage?

3. What is the survey’s title?

Answers:

1. A shortage of qualified managers.

2. Air pollution.

3. 2014 Business Climate Survey

（中國日報網英語點津 Helen 編輯）

About the broadcaster:

Anne Ruisi is an editor at China Daily online with more than 30 years of experience as a newspaper editor and reporter. She has worked at newspapers in the U.S., including The Birmingham News in Alabama and City Newspaper of Rochester, N.Y.