China Losing Its Sheen For Foreign Companies, Report Says

Shanghai Pudong,
Shanghai Pudong,

According to an increasing number of American businesses say they feel unwelcome in China after the country’s government began a crackdown on monopoly pricing and corrupt business practices, according to a new survey. The wide-ranging investigations are also perceived to be unfairly targeting foreign companies.

The American Chamber of Commerce, or AmCham, surveyed its members and released the results on Tuesday, showing that about 60 percent of its members feel less welcome in China compared to 41 percent last year, the Wall Street Journal reported Tuesday. This year’s poll reportedly also asked respondents if they believed that foreign firms were being singled out for attacks by the Chinese government, and 49 percent of the respondents replied in the affirmative.

AmCham said that the survey showed “an increasing sense of pessimism among foreign multinational companies in China” and warned that China could “permanently lose its luster as a desirable investment destination.”

It also said that U.S.-based companies operating in China are finding it difficult to adapt to the Asian country’s shift from a state-led model that relied heavily on exports and investment to a model based on services and domestic demand. And, according to Gregory Gilligan, AmCham’s chairman, reforms to manage this change have been “disappointingly slow.”

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