Chinese companies operating in the United States face continued regulatory uncertainty and growing compliance challenges, although opportunities remain for investment and commercial cooperation, legal, banking and academic experts said at a forum in Southern California.
The discussion held on Nov 4 at the University of California, Irvine, came a day after the midterm elections and examined whether changes in Washington's political landscape could affect the business environment for Chinese companies.
"I do expect it to change for Chinese companies," said Alex Hao, a partner at international law firm JunHe LLP, expressing optimism that changes in the US political landscape following the midterm elections could create a more diverse environment for foreign businesses operating in the country.
Organized by UC Irvine's Long US-China Institute and the China General Chamber of Commerce-Los Angeles, the forum titled, "Chinese Companies in America: Law, Business, and Geopolitical Risk", brought together specialists in international law, commercial banking and political science.
Li Ji, the John S. and Marilyn Long professor of US-China Business and Law at UC Irvine, offered a more cautious assessment.
Li said US policy toward China has become a bipartisan issue, while many regulatory decisions are implemented by government agencies whose personnel and practices do not necessarily change following elections.
Li said that Chinese companies would continue to interact with regulators under existing institutional arrangements.
Susan Yang, managing director of international and commercial banking at East West Bank, expressed hope that trade tensions could stabilize, allowing companies to plan their operations with greater predictability.
She identified political uncertainty, risk management and access to experienced banking partners as three major concerns for Chinese companies operating in the US market.
She emphasized the importance of banks building relationships with customers, particularly for smaller and medium-sized companies unfamiliar with US financial and legal requirements.
Potential opportunities
The discussion also addressed potential opportunities for cross-border business despite continuing trade restrictions and geopolitical competition.
Yang said some Chinese companies have been exploring manufacturing and assembly operations in the US, creating demand for commercial financing, real estate lending and treasury management services.
Li pointed to technological developments, particularly artificial intelligence, as tools that could help companies overcome language barriers and obtain information about foreign legal systems.
"Technology has helped us to lower all these barriers," he said.
Hao emphasized that professional relationships and mutual trust remain essential to cross-border transactions, referring to lawyers, bankers and other professionals involved in facilitating communication between the two countries.
Samantha Vortherms, an associate professor of political science at UC Irvine who moderated the discussion, said changes in the party controlling Congress would not necessarily translate into immediate changes in US policy toward China, citing the continuation of tariffs across different administrations.
