U.S. Businesses Outlook On Growth in China

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US businesses and China

Companies within the U.S. are confident that foreign investment in China will continue to open up in the years to come. It was also mentioned that an “astounding” three-quarters of its members continue to not feel welcomed by the government in China.

The American Chamber of Commerce in China stated in a report that “even-handed enforcement of laws and regulations regardless of shareholder nationality”. Also, in order to reduce trade frictions between U.S. and China, an open investment environment was needed.

The chamber made a statement in saying, “ “After several years of contraction, more companies are expanding investment, yet the growth in investment will remain much slower than historical levels”.

The viewpoint on continuous economic growth in China was “generally positive”. Of the respondents, 46 percent expressed confidence that within the next three years the government would continue to open China’s market to foreign investment. This is up 34 percent since the previous survey.

It was also noted that countless companies were excluded from China’s market because of government regulations. Of the 849 members this survey was sent to, 411 filled it out.

It is perceived that relations between the U.S. and China will improve after Donald Trump’s visit to China in November. It was 17 percent in the previous year’s survey, and its up to 36 percent.


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It was mentioned by the Chinese Foreign Ministry spokesman that China’s door would only continue to open wider, and the government will offer an even better investment environment for foreigners. It is expected that other counties will also extend this treatment to Chinese firms.

Trump made a statement in saying that he was considering huge action against Beijing for alleged theft of intellectual property. No major outcomes on trade controversy has caused Trump to take a hard line on China since his visit.  It is also said the United States never mean to support China’s membership in the World Trade organization in 2001. This is due to the failure to force Beijing to open up its economy.

When the chamber’s chairman, William Zarit, was asked about the possibility of Trump imposing further tariffs on China he responded by saying, “There is a sense that strictly just dialogue has not really brought much in terms of progress. So perhaps some pressure will help get us more progress to a more balanced economic, commercial relationship”.

A little less than half of respondents claimed stronger support for a even playing field or applying “investment reciprocity as an approach to improve market access”. These were listed as the top ways the U.S. government could help China’s foreign businesses.

Another response that came out of this said that going after multilateral regional free trade agreements, such as the Trans-Pacific Partnership deal, could be another way to help foreign businesses in China.

Fifty-nine percent of technology companies and research and development-intensive sectors claimed that they were treated unreasonably compared to domestic companies. Beijing has also revealed a determined Made In China 2025 plan to succeed foreign products.

The chamber report cited an anonymous senior executive in the agribusiness sector as claiming, “We see numerous policies that hamper foreign-invested companies, and also major market distortions being permitted in order to force technology transfer”.

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