US Firms Less Welcome in China, Survey Says
Dino Lirios | | Feb 11, 2015 07:14 AM EST |
A worker rides past a poster showing Beijing's central business district outside a construction site in Beijing, December 29, 2014. REUTERS/Jason Lee
According to the 17th annual business climate survey by the American Chamber of Commerce in the People's Republic of China (AmCham China), a majority of US Firms feel they are being "targeted" by Chinese authorities, mainly citing intensified internet censorship and increased company probes as their reasons.
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As much as 57% of the 477 survey respondents claimed foreign firms are being targeted in the pricing, anti-monopoly and anti-corruption campaigns of President Xi Jinping.
More than half of those who believed they were being singled out say business is negatively affected by these projects.
"All of use are concerned, because we're on the sidelines for the most part, watching and monitoring the campaigns by Xi Jinping and the leadership," says AmCham China chairman James Zimmerman, in a news conference that presented the survey results.
"We don't know if it's going to slow down, or who is going to be targeted next." China however maintains that its anti-monopoly law does not discriminate between domestic and foreign firms.
Nearly half then feel "less welcome" than ever before in China. AmCham China noted that the very dense air pollution in the country poses a threat to firms and their opeations.
53% cited air pollution as a barrier to hiring senior executives overseas in China. This is 10% more than last year and 56% higher than in 2013.
The quality of air in China is heavily affected by the coal-burning power plants and vehicular exhaust. It is said to have killed up to 500,000 people are killed each year.
On top of that, stricter online regulations impede businesses, as 83% of those surveyed assert that their business operations were negatively impacted by the internet censorship.
Recently, authorities have prohibited the use of virtual private networks (VPNs), which has been used to bypass China's massive online censorship, the Great Firewall.
In addition, firms' spirits were dampaned by dismal economic readings of the country, with over 30% of those surveyed having no plans of growing investments this year.
Other factors mentioned were labour costs, inconsistency in regulation, a lag in qualified employees and quality management.
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