Geopolitical tension between Beijing and Washington is the biggest worry facing US companies operating in China, the Associated Press reports – citing a 617-page bilingual survey by the American Chamber of Commerce in China.
Other top concerns are rising labour costs, data security issues, what the companies see as inconsistent and unclear policies, and a feeling that the playing field is not level, in spite of China claiming to welcome foreign businesses.
“The Chinese government has stated that it encourages foreign direct investment, but many of our members continue to encounter barriers to investment and operations including policies that discriminate against them and public relations campaigns that create suspicion of foreigners,” said the report, released on Tuesday.
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At the same time, restrictions imposed by the US government have raised the cost of doing business – and the country’s upcoming presidential election has created uncertainties for the future.
AmCham chair Sean Stein said companies were “getting squeezed” between the two governments. “On the regulatory front, what we’re seeing is it’s not getting easier to do business in China. It’s getting harder.”
The report contained hundreds of recommendations, spanning a wide range of industries and directed at both the US and Chinese governments. For example, it urged China to create and implement “transparent and practical economic policies which treat domestic and foreign entities equally.”
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It also asked China’s leaders to clarify and narrow the scope of the country’s anti-espionage law, which in its current broad form makes foreign companies wary.
The report meanwhile called on Washington to avoid resorting to ineffective unilateral controls and instead engage more with Chinese companies before subjecting them to sanctions.
It noted that US companies weren’t typically planning to leave China, given the massive market’s commercial importance. But it said that their willingness to make China their strategic focus was faltering in the current climate.
