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

Lesotho Faces New Round of Violence, Political Crisis

Brutal killing of military officer has sent former leaders back into S. Africa where they're watching anxiously as regional officials head in to try to restore peace More

Video US Diplomat Expects Adoption of Bosnian Massacre Anniversary Resolution

Samantha Power says there's broad consensus about killings in Bosnia's war, but Russia calls resolution 'divisive,' backs UN countermeasure More

UN Report Exposes Widespread Boko Haram Atrocities

Damning report graphically details pattern of vicious, widespread atrocities committed by Islamist militants 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.
Olympics Construction Scars Sacred Korean Mountaini
X
July 02, 2015 4:10 AM
Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Olympics Construction Scars Sacred Korean Mountain

Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Xenophobia Victims in South Africa Flee Violence, Then Return

Many Malawians fled South Africa early this year after xenophobic attacks on African immigrants. But many quickly found life was no better at home and have returned to South Africa – often illegally and without jobs, and facing the tough task of having to start over. Lameck Masina and Anita Powell file from Johannesburg.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Obama on Cuba: This is What Change Looks Like

President Barack Obama says the United States will soon reopen its embassy in Cuba for the first time since 1961, ending a half-century of isolation. VOA White House correspondent Luis Ramirez reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video US Silica Sand Mining Surge Worries Illinois Residents, Businesses

Increased domestic U.S. oil and gas production, thanks to advances known as “fracking,” has created a boom for other industries supporting that extraction. Demand for silica sand, used in fracking, could triple over the next five years. In the Midwest state of Illinois, people living near the mines are worried about how increased silica sand mining will affect their businesses and their health. VOA’s Kane Farabaugh has more in this first of a series of reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.
Video

Video Texas Defies Same-Sex Marriage Ruling

Texas state officials have criticized the US Supreme Court decision giving same-sex couples the right to marry nationwide. The attorney general of Texas says last week's decision did not overrule constitutional "rights of religious liberty," and therefore officials performing wedding services can refuse to perform them for same-sex couples if it is against their religious beliefs. Zlatica Hoke reports on the controversy.
Video

Video Rabbi Hits Road to Heal Jewish-Muslim Relations in France

France is on high alert after last week's terrorist attack near the city Lyon, just six months after deadly Paris shootings. The attack have added new tensions to relations between French Jews and Muslims. France’s Jewish and Muslim communities also share a common heritage, though, and as far as one French rabbi is concerned, they are destined to be friends. From the Paris suburb of La Courneuve, Lisa Bryant reports about Rabbi Michel Serfaty and his friendship bus.
Video

Video Saudi Leaks Expose ‘Checkbook Diplomacy’ In Battle With Iran

Saudi Arabia’s willingness to wield its oil money on the global diplomatic stage appears to have been laid bare, after the website WikiLeaks published tens of thousands of leaked cables from Riyadh’s Ministry of Foreign Affairs. VOA's Henry Ridgwell reports.
Video

Video In Kenya, Police Said to Shoot First, Ask Questions Later

An organization that documents torture and extrajudicial killings says Kenyan police were responsible for 1,252 shooting deaths in five cities, including Nairobi, between 2009 and 2014, representing 67 percent of all gun deaths in the areas reviewed. Gabe Joselow has more from Nairobi.

VOA Blogs

World Currencies

EUR
USD
0.9012
JPY
USD
122.90
GBP
USD
0.6400
CAD
USD
1.2582
INR
USD
63.438

Rates may not be current.