Rising tensions between China and the United States remain a top concern for American companies operating in China. ChinaAccording to a report by the American Chamber of Commerce in China released on Tuesday.
A survey of U.S. companies said inconsistent and unclear policies and enforcement, rising labor costs and data security issues were also top concerns. He also said that despite claims by Chinese leaders that the government welcomes foreign companies, many are still prevented from competing freely.
“Although the Chinese government says it encourages foreign direct investment, many member states face barriers to investment and business operations, including discriminatory policies against foreigners and public relations campaigns that invite suspicion of foreigners. continue to do so,” the report states.
The report welcomed improved relations in 2023, culminating in a summit of Chinese leaders. Xi Jinping and President Joe BidenHowever, he said that the US presidential election in November “looms large” in the future business environment.
It is unclear what impact either victory will have. Biden or former President Donald Trump? It may be for relationships.But President Trump can do it. trade war deepens He started during his first term. His harsh rhetoric on China and isolationist approach to foreign policy could increase uncertainty.
Recently, the US Secretary of the Treasury Janet Yellen visits BeijingThere, she expressed concern that potential overcapacity in Chinese industries such as electric vehicles, steel manufacturing and solar panels could crowd out U.S. and other foreign manufacturers.
The fact that such visits are taking place “suggests that our two governments are able to talk about difficult issues and do so in a way that is not acrimonious.” That was a very positive thing,” said chamber president Sean Stein.
According to the report, the chamber believes that high-level exchange and communication between the two sides is a top priority.
The report says U.S. companies are frustrated by slow progress on China’s promise to level the playing field between foreign and Chinese companies. Meanwhile, increased U.S. export controls and other regulations are increasing business costs.
“As a result, companies are being squeezed between the two governments, and in terms of regulations, doing business in China is not getting any easier. It’s getting harder and harder,” Stein said. Told.
While profits improved last year for U.S. companies operating in China, just under half expect to be profitable in 2024.
Still, many members of the U.S. Chamber of Commerce said they were more optimistic about China’s own economic growth.
Among its many recommendations, the report called on China to develop and implement “transparent and practical economic policies that treat domestic and foreign entities equally.”
Citing concerns that business people are at risk of being embroiled in accusations of violating China’s national security, he appeals to the country’s leaders to clarify and narrow the scope of China’s national security. Ta. Anti-espionage law To ensure that normal business operations are not disrupted.
The demands follow repeated raids on foreign companies that Chinese authorities say are carried out on national security grounds. Lester Ross, co-chair of the chamber’s policy committee, said raids on consulting firms tend to hinder foreign companies’ assessment of the business environment and discourage investment.
The report also included recommendations for the United States, including providing a clear visa policy that shows Chinese students are welcome. Similarly, American students should be encouraged to: Study abroad in China said the report.
It also called on U.S. officials to avoid relying on unilateral regulations that may be ineffective and fail to achieve national security and foreign policy goals. The U.S. government should work with Chinese companies to address export control concerns, such as the military use of civilian technology, before they become targets of sanctions, he said.
The 617-page bilingual report provided hundreds of recommendations across a wide range of industries, from sports and online streaming to occupational safety issues and local traffic management.
Given its size and importance as a market of 1.4 billion people, U.S. companies generally have no plans to move their supply chains out of China. But as that advantage wanes, the appetite for increasing investment and making it a strategic focus is diminishing, the report said.
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Associated Press writer Simina Mistreanu contributed from Kaohsiung, Taiwan.
