Many manufacturers say China is throwing up roadblocks to outside companies with operations there.
The American Chamber of Commerce in China released results of its annual Business Climate Survey. (The full results will be made available soon in a C of C whitepaper.) More than 400 companies took part in the survey designed to determine how business-friendly China is to U.S. companies, especially manufacturers.
Some of the results of the survey:
- 71% of respondents believe the licensing process in China effectively discriminates against foreign companies
- 35% said licensing procedures are growing increasingly difficult for everyone, and
- 70% rate China’s enforcement of intellectual-property-rights laws as either “ineffective” or “totally ineffective.”
On top of that, China is beginning to see rampant inflation, driving up the costs of labor and raw materials.
In a related AP story, China has responded to U.S. complaints about intellectual property by arresting 3,000 people in a sweep of copycat manufacturers selling unauthorized knock-offs of U.S. goods.