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- U.S. firms have less access than Chinese companies - American Chamber of Commerce in China
U.S. firms have less access than Chinese companies - American Chamber of Commerce in China
CNBC reports that the American Chamber of Commerce in China said in a report that many U.S. companies in China are still finding it harder to operate in the country compared with their Chinese counterparts in the U.S..
“AmCham China’s members face longstanding structural challenges in the China market that conspire to tilt the playing field against (foreign-invested enterprises) and foreign investors,” the report said.
“Two-thirds of members say they would consider increasing their investments in China if markets were open on a par with those in the US, a slight increase on last year,” the authors wrote.
Foreign businesses in China must often work with a local partner and face many limits on local investment, while Chinese companies can operate in the U.S. with far fewer restrictions.
The following are some industries in which American companies operate at a disadvantage in China, according to the report:
Health care services — Foreign investment in medical institutions in China cannot exceed 70%. In comparison, no such cap exists in the U.S.
Cloud computing — Foreign firms cannot invest more than 50% in cloud services businesses. There are no such restrictions in the U.S.
Movies — The Chinese government sets film release dates and requires that 75% of revenue remains with Chinese film production companies. In the U.S., Chinese companies can distribute films without restrictions and set their own release dates.
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