US Companies Optimism Tempered with Regulatory Concerns

BEIJING, Apr. 2 /PRNewswire-Asia/ -- The American Chamber of Commerce in the People's Republic of Commerce (AmCham-China) released its 12th annual Business Climate Survey today. The results reveal strong overall optimism in the Chinese economy among US business, coupled with concerns about trends in the regulatory environment.

Overall, confidence among US businesses in China rebounded from a dip in last year's survey. More than four in five companies (83 percent) report being more optimistic this year than last year. Meanwhile, the five-year business outlook is at its highest levels since 2007, with 91 percent reporting that they were "slightly optimistic" or "optimistic."

The survey also highlights the profitability of US companies in China and the importance of bilateral ties to the American economy. "Despite recent public differences on specific issues, US and China relations remain strong," said AmCham-China President Christian Murck. "Both the US and Chinese economies benefit greatly from the relationship."

While much of the news is good, there are also some negative trends. "Despite general profitability, there are some areas of concern about the regulatory environment," said Mr. Murck. "The lack of consistent application of the law is a growing problem, particularly as US companies expand across China." Mr. Murck pointed out that "inconsistent regulatory interpretation" now ranks as the number one business challenge for US companies in China for the first time in the survey's history. There is also rising concern among high tech and IT companies that in an attempt to encourage innovation China may discriminate against foreign-invested enterprises and imports.

Nevertheless, the survey's results show an overall positive economic environment. "It is important that disagreements and areas of concern do not obscure the overall benefits of strong US-China economic ties," Mr. Murck said. "China is good for the US economy and American jobs." AmCham-China looks forward to playing a constructive role in promoting increased bilateral dialogue between two of the world's most important economies.

The 2010 AmCham-China Business Climate Survey was conducted among AmCham-China members in late 2009. There were 388 company respondents to the survey.

About the American Chamber of Commerce in China:

AmCham-China is an independent, non-profit organization representing the interests of over 2,600 companies and individuals doing business throughout China. First founded in 1920, it was formally recognized by China's Ministry of Civil Affairs in 1991. The organization has its headquarters in Beijing, with chapters in Central China (Wuhan), Tianjin and Dalian. For more information, visit: http://www.amchamchina.org

    For further information, please contact:

    AmCham-China
     Ulan Tuya
     Tel:   +86-10-8519-0835
     Email: [email protected]

SOURCE AmCham-China