U.S. companies in China should focus on their medium- and long-term development rather than complain about the nation's so-called less-than-desirable business environment, an expert said, rebutting a report saying that U.S. companies in China are concerned that the country's business environment seems to lack regulatory fairness and transparency.
U.S. companies operating in China remain concerned that the country's policies and rules "unfairly favor local competitors" and lack transparency, and they also worry about State-driven company mergers, Reuters reported Wednesday, citing a survey released by the American Chamber of Commerce (AmCham).
"China has announced laws about encouraging foreign investment and State-owned enterprise (SOE) reform, but the implementation of laws takes time. This may have led to the U.S. companies' complaints," Chen Fengying, a research fellow at the China Institute of Contemporary International Relations, told the Global Times on Wednesday. She said that favorable policies for foreign companies will be implemented in the next three years.
China is seeking to introduce more foreign investment and improve the domestic business environment. In new guidelines for foreign investment, the Chinese authorities have opened up the services, manufacturing and mining sectors, trimming 30 restrictive measures on overseas capital.
Premier Li Keqiang also asked relevant departments on July 5 to issue more policies and regulations to forge a fair legal environment and treat locally registered foreign-backed firms the same as domestic ones.
Although U.S. companies may worry that SOE mergers may provide tougher competition, the move is an important part of China's market-oriented reform that aims to cut the number of SOEs and enhance the competitiveness of the remaining ones, Chen said.
"Foreign companies' concerns about State-driven company mergers indicate the growing competitiveness of SOEs in emerging markets including China," she said.
Despite complaints, most U.S. companies remain committed to their operations in China and plan to take advantage of the rising spending power of China's growing middle class, according to a report that the AmCham sent to the Global Times in January.
"In addition to growing core products, services, and customer segments, members say they will also prioritize organic growth by venturing into new markets, introducing new products, and targeting new customer segments," it said.
The report released on Wednesday by the AmCham showed that 73.5 percent of the 426 surveyed companies reported revenue growth in 2016, rising from 61 percent in 2015.
