China is a crucial source of profits for US businesses, but product piracy, red tape and other problems remain serious obstacles, the American Chamber of Commerce in Shanghai says in a report that coincides with Chinese President Hu Jintao’s (胡錦濤) visit to Washington.
Data compiled for the report released yesterday showed US companies profiting more than ever before in the fast-growing China market. However, companies surveyed said the country remains a very challenging place to do business.
As Hu visits the US along with Chinese business leaders, the group appealed for problems hindering growth and fair competition to be addressed.
Nearly nine in 10 of the 346 companies responding said their revenues grew last year and 80 percent said they were profitable, the highest figures since the survey began.
Auto-related companies were most confident about their opportunities in China — now the world’s biggest car market — and chemical and electronics companies also said the local market was welcoming to them.
However, two-thirds of the respondents said they believed the business regulatory environment for their industries was -deteriorating or not improving.
Apart from intensifying competition from both foreign and local companies, the firms surveyed said finding qualified staff was the most significant challenge they faced.
However, other problems such as product and trademark piracy, preferential treatment of local companies and requirements for using locally made technology are major hurdles, the report said.
Nearly half of the companies responding to the survey reported that regulations favor domestic companies over foreign rivals.
“It is essential that the US continues to aggressively engage China to address key business challenges that hinder market access today and could impact future investment,” American Chamber of Commerce in Shanghai’s president Brenda Foster said.
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