A new survey by an American business lobby has strongly suggested that the Chinese regulators are targeting foreign companies, citing ‘protectionism’ is their top concerns for enabling the smooth operations in the Asian country, which is second largest economy of world.
The American Chamber of Commerce (AmCham) in China conducted its annual survey in which 57 percent of the 477 respondents said that they believed the recent investigations by Beijing “singled out” foreign firms.
The findings of the survey also showed that a rising protectionism had emerged as the fifth greatest concern for the businesses in Beijing for the first time since 2010.
The results of the annual survey were published on Wednesday.
James Zimmerman, chairman of the American Chamber of Commerce in China, said, “There are concerns that China will take an approach, that when the economy slows down, they become more protectionist.”
Some of the top-most challenges before the business include: unclear laws and regulations, labor costs, shortages of qualified employees and managers and many more.
In the recent past, four global business lobbies have raised objections over how the antitrust regulators of China carried out probes against them. Nearly 30 overseas companies, including American software bigwig Microsoft Corp and South Korean tech giant Samsung Electronics Co Ltd, have been under China’s scrutiny.
60 percent of survey respondents said that China has issues of high cyber security, data security threats and intellectual property leakage risk greater than any other markets.
Meanwhile, the National Development and Reform Commission (NDRC) has defended its actions, saying it does not target foreign firms. The NDRC has recently conducted the investigation on Qualcomm.
Even though the survey results talked how much the concerns are haunting the business lobbies, 73 percent of the respondents still voted in support of doing business in China market over the next two years, saying it’s profitable or very profitable.