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

Could Nemtsov Threaten Putin in Death as in Life?

Dynamic and debonair opposition leader had supported liberal economic reforms, criticized Russian president's aggression in Ukraine More

Oil Smuggling Highlights Challenges in Shutting Down IS Finances

Pentagon spokesman says Islamic State 'certainly continues to get revenue from the oil industry black market' but that airstrikes have made a dent More

India Focuses on Infrastructure, Investment to Propel Economy

Government expects economy to grow at 8 to 8.5 percent in next fiscal year 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.
US Supreme Court Hears Hijab Discrimination Casei
X
Katherine Gypson
February 25, 2015 11:30 PM
The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video US Supreme Court Hears Hijab Discrimination Case

The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video Falling Gas Prices Hurt Nascent Illinois Hydraulic Fracturing Industry

Falling oil prices are helping consumers purchase cheaper petroleum at the pump. But that’s made hydraulic fracturing or “fracking” less economically viable for the companies in the United States invested in the process. VOA’s Kane Farabaugh reports on one Midwestern town that was hoping to change its fortunes by cashing in on the next big U.S. oil boom.
Video

Video Fighting in Sudan's South Kordofan Fuels Mass Displacement

Heavy fighting in Sudan's South Kordofan state is causing hundreds of thousands to flee into uncertain conditions. Local aid organizations estimate as many as 400,000 civilians have been internally displaced since the conflict began more than three years ago, while another 250,000 have fled across the border to refugee camps in South Sudan. VOA's Adam Bailes reports.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.
Video

Video A Filmmaker Discovers Her Biracial Identity in "Little White Lie

Lacey Schwartz grew up in an upper middle-class Jewish family, in a town in upstate New York where almost everyone she knew was white. She assumed that she was, as well. Her recent documentary, Little White Lie, tells the story of how she uncovered the secret of her true racial background. VOA’s Carolyn Weaver has more on the film.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video US-Cuba Normalization Talks Resume Friday

Negotiations aimed at normalizing diplomatic relations between the U.S. and Cuba resume Friday. On the table: lifting a half-century trade embargo and easing banking and travel restrictions. There's opposition in Congress, but some analysts say there may be sufficient political and economic incentives in both nations for a potential breakthrough this year. VOA's Mil Arcega reports.
Video

Video Pakistan's Deadline For SIM Registration Has Cellphone Users Scrambling

Pakistani cell phone users have until midnight Thursday to register their SIM cards, or their service will be cut off. While some privacy experts worry about government intrusion, many Pakistanis are just worried about keeping their phone lines open. VOA Deewa reporter Arshad Muhmand has more from Peshawar.
Video

Video Myanmar Warns Factory Workers to End Strikes

Outside Myanmar's main city Yangon, thousands of workers walked off their jobs earlier this month demanding a doubling of their wages, pay raises after a year and input from labor unions on industrial regulations. Since Friday, the standoff has grown more tense as police moved in to disrupt the sit-ins, resulting in clashes that injured people from both sides. VOA correspondent Steve Herman visited industrial zones which have become a focus of Myanmar's fledgling workers rights movement.
Video

Video Oscar Winners Do More Than Thank the Academy

The Academy Awards presentation is Hollywood’s night to reward the best movies from the previous year. It’s typically a lot of glitter, a lot of thank you’s, a lot of speeches. But many of this year’s speeches carried messages beyond the thank you's. VOA’s Carolyn Presutti takes a look.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8896
JPY
USD
119.26
GBP
USD
0.6475
CAD
USD
1.2451
INR
USD
61.816

Rates may not be current.