US firms in China face hardest year in decades, says AmCham
A growing number of chamber members report feeling less welcome in China than previously
US companies in China face one of the most challenging environments in decades this year, the American Chamber of Commerce in China says.
Political and economic transitions in the United States and China, an increasing perception of animosity toward foreign businesses and slowing growth are dimming the outlook, AmCham said in a report on Tuesday. Despite recent rhetoric regarding opening up and globalisation, investment barriers remain high, the chamber said in its annual American Business in China White Paper.
“The pace of economic reforms and market opening has been slow and faltering,” AmCham said. While administration, regulatory transparency and intellectual property protection have improved, policies designed to support domestic industries and national champions have narrowed the space for participation by foreign companies, it said.
The warning is the latest by the Beijing-based non-profit group, which said in January that more US companies are slowing investment. About 81 per cent of its members reported feeling less welcome in 2016 than previously, up from 77 per cent in 2015.
“We are experiencing a clear increase in uncertainty as the US-China relationship enters a new era,” AmCham Chairman William Zarit wrote in his introduction to the report. “The Trump administration is still finding its feet, and China itself will be undergoing a political transition this year. Multinational companies spanning this relationship, both American and Chinese, are paying close attention to developments as they make their plans.”
