Recession doubted

Only 14 percent of respondents in China forecasted a recession in the next six months, reflecting the country's economic buoyancy. Responses from China were fairly consistent across industries on the issue, although at 21 percent, those from the IT&T sector were most inclined to expect a recession.

"This may reflect a continuing caution in the wake of dotcom failures, as most companies in this sector are busy and are recruiting additional staff," Eagan said.

Most firms would adopt headcount freezes in a recession, with 84 percent of respondents saying they would use the policy to weather the tough times.

Use of salary freezes was the second most-frequently mentioned recession-survival method, with 35 percent of respondents in China saying they would use the policy - more than in any other surveyed Asia market. Firms in China were also the most likely among those surveyed on the continent to cut training in the event of a recession, a measure 18 percent of respondents mentioned.

Media, public relations and advertising firms were particularly reluctant to cut staff, with just 15 percent mentioning the option. However, they were most likely to freeze headcounts and salaries, at 94 and 48 percent, respectively.

At 33 percent, banks were the most likely to cut staff in a recession, as high salaries are typical in the industry.

Firms in the IT&T sector were most likely to cut training, with 44 percent of respondents mentioning the option. "Technical training can be very expensive in China," Eagan said.