News / Economy

Survey: US Companies 'Harmed' by Chinese Bureaucracy

America Chamber of Commerce in China says its members have been suffering from Chinese protectionism in key sectors

Chinese workers set up a signboard for a shop selling American motorcycles in Beijing, April 16, 2011
Chinese workers set up a signboard for a shop selling American motorcycles in Beijing, April 16, 2011
Peter Simpson

In Beijing, the American Chamber of Commerce says U.S. companies operating in China are suffering from protectionism, bureaucracy and corruption. The business group released its annual white paper Tuesday, calling on Beijing to reconsider industrial policies that discrimiate in favor of domestic companies. But, American enterprises are still turning a profit in the world’s second biggest, and still booming economy.

The 2011 annual white paper, published Tuesday says the majority of its members have been suffering from an increase in Chinese protectionism since the 2008 global economic crisis.

The reports says 26 percent of respondents claim Chinese policies favor domestic technology suppliers and bar entrance into other key sectors, such as banking, telecommunications, legal affairs and insurance.

Christian Murk, the American Chamber's president, says American companies are still making money in China, but that the opening up and reform of Chinese markets has slowed in recent years.  And, he warns, the levels of bureaucracy, corruption and protectionism are hurting many U.S. ventures in the world’s second biggest economy.

"We asked people what are the challenges of doing business in China and what is difficult about operating in this market. The top five in our current survey were:  bureaucracy, management level human resources constraints - that is you can’t find managers with specific skills sets - unclear laws and regulations, inconsistent regulatory interpretations and intellectual property rights infringement," he said. "And, then if you look at the lower ranking concerns, they are corruption, obtaining required licenses, non-management human resources - that is unskilled labor -  national protectionism, local protectionism, and difficulty enforcing contract terms."

Murk says the restrictions and poor regulatory environment call into question China’s commitment to its obligations as a World Trade Organization member.

Under WTO rules, China is supposed to develop free and open markets.

Murk says the survey’s results were not all negative.

"We should emphasize that operating conditions are very good for American companies and that is clearly seen in our survey data," he added. "Eighty-five percent reported revenue growth in 2010. Seventy-eight percent said they were profitable or very profitable.  Sixty-three percent said margins improved in China over the prior year. Forty one percent said margins in China were better than  global margins."

Murk says China's latest five-year plan, announced in February, commits it to further increase market reform.

China’s Ministry of Finance was unavailable to comment Tuesday on the survey, copies of which have been handed to the Chinese government and will be given to U.S. politicians later this week.

Murk says it is time for China to once more accelerate its reform and opening policies - just as it did when it joined the WTO a decade ago, in 2001.

You May Like

UN Watchdog Urges Israel to Probe Possible Gaza War Crimes

More than 2,100 Palestinians, most of them civilians, were killed in a 51-day war in Gaza, along with 67 Israeli soldiers and six civilians in Israel More

New Kenyan 'Thin SIMs' Poised to Transform African Mobile Money

Equity's new technology is approved in African nation for one-year trial, though industry leader Safaricom says thin SIMs could lead to data theft and fraud More

Solar's Future Looks Brighter

New technology and dropping prices are contributing to a surge in solar power More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.