The US companies in China face the most challenging environment for their business for decades, according to the American Chamber of Commerce in China. Despite calls for openness and globalization the investment barriers remain high. Moreover, the political and economic transitions in USA and China, increasing the hostility towards foreign firms and slowing of growth darken the predictions, adds the report of the Chamber of Commerce.
“The pace of economic reforms and market opening is slow and indecisive”, says the chairman of the American Chamber of Commerce in China, William Zarit. “While conditions in the administration, regulatory transparency and intellectual property are improving the policies to support local industries and national companies are shrinking space for the participation of foreign forms. We are experiencing a clear increase in uncertainty at a time when relations between the US and China are entering a new era”, added William Zarit.
The bigger transparency will help the government’s anti-corruption fight by increasing the confidence of private companies that their investments will be protected by law. The stability and predictability provided by unambiguous regulatory environment will be important for the continued growth of China, according to the US Chamber of Commerce in China.