On April 21, 2015, the American Chamber of Commerce in China (AmCham China) released the 2015 American Business in China White Paper (White Paper). The White Paper confirms China’s commitments on further opening up and economic reform and comprehensively application of the rule of law are positive steps and stresses the need for further improvement of the market environment.

 

According to the White Paper, 65 percent of its members believed “the lack of transparency, clarity or consistency in the legislative process” checked their competence and willingness to invest in China. This element has remained as the main business challenges for four consecutive years. In order to ensure the Chinese market open to the foreign enterprises, effective rule of law and more fairly enforced business regulations are indispensable.

 

Enterprises of all industries said the market access restriction is a major element restraining their competence and willingness of making investment in China. All members agreed that the bilateral investment agreement will help to reduce the prevailing complexity of the regulatory environment of China, allow enterprises to benefit from the market access, including entering a new market, making acquisition in China and more flexible organized investment structures.

 

Although more than 85 percent of members believed China has made accomplishment in the intellectual property rights enforcement, about 80 percent of members considered the enforcement inefficient, and 2/3 members held China posing a higher risk in intellectual property right and data leakage than other countries. Therefore AmCham China encourages the Chinese government to implement unified enforcement in the intellectual property rights across the country, and release detailed enforcement rules in line with prevailing laws by the principle of transparency and procedural justice.

 

Thirty-three percent of the members said “exclusion of foreign-funded enterprises or unfair treatment to foreign enterprises in the standard formulation process” restrains their competence and willingness to make investment in China. Of that, 55 percent of members held that such standards are conducive to domestic technology and 39 percent believed that exclusion of technical committees to foreign enterprises will further restrain their investment. “We encourage the Chinese government to allow foreign enterprises to take part in the formulation of standards at the equal conditions with the Chinese enterprises, including technical committees and sub-committees.”

 

Source: Excerpts from International Business Daily, April 28, 2015