Foreign companies, which require exclusive market information to compete effectively, and who worry that the results of their research could be leaked to competitors, will now be less likely to carry out research projects. Industry insiders are already reporting a significant decline in the commissioning of new research since August. Should foreign companies be unable to obtain necessary market information, this could in turn further discourage foreign investment.
If China wants to be accepted as a legitimate member of the international economic community it is going to have to understand that it can't change its investment policies on a whim. More important, it must accept the fact that foreign companies invest here to earn money, and that there's nothing wrong with this.
Paul Mooney is a freelance writer based in Beijing.
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