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Operation of Foreign Enterprises is Becoming More Difficult in China

Half of American enterprises in China believe that they are being treated unfair, and gradually becoming the targets of Anti-corruption campaign conducted by the Chinese government.

Within the context of the Anti-corruption campaign becomes more and more aggressive, foreign enterprises seem to be unwelcomed in China. Welcoming signals could be seen as easy and simple legal and administrative procedure, low tax rate, good incentives or flexible anti-monopoly policy. According to the recent survey conducted by American Chamber of Commerce in China, 60% of American enterprises feel not to be welcomed in China, increases 41% compared to 2013.

Mr. Gregory Gilligan, the Manager of American Chamber of Commerce in China spoke to CNN:” If the investment climate gets worse than now, the economic relationship between China and the rest of the world will be affected.” In recent months, many foreign enterprises, especially in technology and automobile manufacturing industries have been accused by the Chinese government related to corruption, transfer pricing, dumping, or broken anti-monopoly law.

Famous brands such as BMW, Volkswagen, Qualcomm, Microsoft, Apple and Chrysler are the targets under investigation of the Chinese government, or forced to pay a big fine.

Some economists comment that this will be a great opportunity for other emerging markets such as Vietnam, Myanmar, and Cambodia to receive huge foreign capital from big corporations transferring their production out of China.

 (Source: Infonet)

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