Amchamp

For James Zimmerman, chairman of the American Chamber of Commerce (AmCham) in China, the country's entry into the World Trade Organization (WTO) in 2001 is the most significant change for it in the past three decades of opening up and reforms.  

"After that, China indeed opened up its market and started to integrate into the world economy," says Zimmerman. As AmCham chairman since 2006, Zimmerman is also a lawyer who had started doing China-related business 20 years ago. Living and working permanently in China for the last seven years, he has witnessed many changes himself.

The number of AmCham members has increased by nearly 10 percent every year during the past years, and Zimmerman is confident that it will maintain the growth rate as long as China remains attractive to investors.

Business opportunities in China have benefited investors at various levels. When Amcham first opened its office in Beijing in 1980, it had a small number of members, and most were multinationals. While the big names are still there today, an increasing number of small and medium sized enterprises have joined AmCham.

"They are brought here by the vast business opportunities in China," says Zimmerman.

Three decades ago, only a few cities in China were known by the outside world. When foreigners came the two choices were overwhelmingly Beijing or Shanghai. Today AmCham members have cast their eyes further and five years ago, AmCham began inviting its members to visit 10 second- and third-tier cities, including Chengdu, Dalian and Shenyang.

"The economy in these cities is developing fast, and the rising middle class there have huge demand of goods and services," says the chairman.

The dynamic economy also leads to a changing landscape of investment, and the list of cities to be visited keeps increasing. "A third-tier city today could be a second-tier city tomorrow," Zimmerman says. Although its headquarters is still in Beijing, business and members of AmCham are now spread all over the country.

A major role for AmCham is to communicate with Chinese officials on current issues and enhance mutual understanding. AmCham has publicized an annual white paper on doing business in China and handed it over to various Chinese government departments since 1999. Based on surveys among its members, the annual White Paper reflects the law enforcement and business environment in China.

As part of networking efforts, Amcham also maintains the tradition of organizing a high-profile annual dinner at the end of each year, inviting high-ranking officials and businessmen.

Last year, Vice-Premier Wu Yi delivered the keynote speech on trade relations between China and the US. Among the Chinese officials that he had met, Zimmerman says Wu impressed him the most for her integrity and capability of dealing with tough issues. "We wish there were more Chinese officials like her," Zimmerman says of Wu who is scheduled for retirement after this month's meeting of National People's Congress.

AmCham members have also been active in Washington DC where they lobbied for most favorable nation status for China in the 1990s and were supportive of China's entry into the WTO. Recently, it has been active in communicating with the US side on others issues such as IPR protection, market access, and lowering trade barriers.

As a lawyer, Zimmerman has also witnessed the changes in China's law-making process. A series of laws, which aim to make doing business in China more regulated, have been put into practice during the past decades. Significant ones include the anti-monopoly law and the tax law, which gives domestic and foreign investors an equal tax rate. The labor contract law, which has caused wide debate and worries that it may drive foreign investors away from China, is also important in terms of labor benefits protection, according to Zimmerman. "I hope all these laws can be appropriately put into practice," he says.

Asked why he has been here so long, Zimmerman said he has remained for the opportunities, as well as the challenges in China. Life, as well as work here, keeps changing. When he first came here 10 years ago, the main vehicle in the city was the bicycle. Today, streets are dominated by private cars and the new Beijing airport Terminal 3 has just been begun its test run. China was just opening its door to foreigners and investors when he first came, and Beijing this year is hosting the Olympics. Looking ahead, AmCham believes that China will continue to change, and bilateral trade will bring the two countries even closer.

Meanwhile, Zimmerman says that there are several aspects that he hopes China can improve. A larger market access, a more independent judiciary system and more transparency in the law-making process are something he looks forward to as China carries on its reforms.

(China Daily 03/10/2008 page6)