Economy
US companies still want to do business in China
By Tan Yingzi and Chen Weihua (China Daily)
Updated: 2010-11-19 10:21
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A Minnie Mouse doll is seen at a field in Shanghai, where Shanghai Disneyland will be built. Many US companies have expressed their intention to invest or expand in China, according to a survey by the US-China Business Council. [Photo / China Daily] |
WASHINGTON / NEW YORK - Many US companies said in a survey that they are committed to doing business in China, despite a federal commission report that criticizes China for its "highly discriminatory" economic practices.
But the same survey, released by the US-China Business Council (USCBC) on Wednesday, echoed the tone of the report by the US-China Economic and Security Review Commission. In the survey, the US companies said they are increasingly concerned with barriers to accessing the Chinese market.
The nonprofit organization based in Washington represents about 220 US companies selling goods and services in the Chinese market.
According to the survey, 87 percent of respondents said that their operations in China posted revenue growth in 2009. Nearly 90 percent said that profit margin rates in China equaled or exceeded their companies' global margins.
Their greatest worries do not only pivot around human resources, such as talent recruitment and retention, but also around administrative licensing and competition with State-owned enterprises.
Council President John Frisbie said in a statement that for "many USCBC members, these concerns are less about real impact on current operations than they are about policy and regulatory trends that could seriously hinder foreign companies and discourage future investments, if the trends continue and the policies are fully implemented".
Despite the complaints with China's trade policies, the frustration on Wednesday was also aimed at the United States.
Jagdish Bhagwati, professor of economics and law at Columbia University, said the US has been continuously bashing China unnecessarily because China is moving toward an economy more focused on domestic consumption.
Charlene Barshefsky, who was US trade representative during the Clinton administration, pointed out that the US does not have a strategy with regard to China.
She said that if the US wants "to make progress with China, sometimes being quiet is better. Sometimes a discussion of a reasonable sort is better than overheated rhetoric. The (Obama) administration needs to sort out how it wants to deal with China".
"Is it China's fault to have a current account surplus once in the last 30 years? Is it China's fault that we (the US) have deficits with more than 60 countries, not just one? Is it China's fault that we are on a fiscally unsustained path, critically dependent on capital inflow to keep the economy going?" he asked.
China recently has relaxed aspects of its trade policies. Last year, China removed a requirement that most of the components of wind power-related equipment be made within its borders.
The move was made in the hopes of allowing foreign companies to compete in China's wind power market.
The regulation had stated that all local governments use more than 70 percent locally made technologies and products in their wind power facilities.
Premier Wen Jiabao has repeatedly said that foreign companies will not face discrimination in the country.
He said the Chinese government will "unswervingly" continue its course of openness that will facilitate foreign investment in China.
Wen said recently that the policy of encouraging innovation treats all businesses in China the same. It will not exclude foreign companies.
He reassured foreign companies in September at the World Economic Forum in Tianjin that "China is committed to creating an open and fair environment for foreign-invested enterprises."