Foreign investors worry about their long-term future in Chinese key market due to Chinese protectionism
A new survey from the American Chamber of Commerce in China indicated that concern is growing among U.S. businesses in the country that protectionist policies are threatening their long-term future in a key market, even while they remain optimistic about an economy that has rebounded strongly from the global recession.
The survey adds to mounting evidence that foreign investors, looking beyond the current boom, are growing cautious. China says steadily increasing levels of foreign investment indicate that the country remains an attractive destination for foreign businesses. Foreign direct investment rose 7.7% in the first three months of this r from the same period last.
'While most members continued to be optimistic about China's market potential, many have begun questioning their long-term viability in China as they consider the obstacles presented by an increasingly difficult regulatory environment,' says the AmCham-China White Paper, released Monday.
For the first time in the 12-r history of the AmCham-China surveys, regulation tops the list of concerns among member companies, displacing worries about rising salaries and recruiting and retaining key staff.
An AmCham-China survey released in March showed that a growing number of U.S. companies feel unwelcome in China. That result was closely linked to regulations aimed at squeezing foreign firms out of China's vast government procurement market.
Overall, the AmCham survey showed that U.S. companies in China are performing well. 91% U.S. companies said they were optimistic about the outlook for the next five years.