US-China relations and tariffs are the top concerns of US companies doing business in China. US-China relations continue to top the list of business challenges, and tariffs jumped from eighth to second place amid renewed trade frictions. Companies’ first priority for the bilateral negotiations that kicked off in May is tariff reduction.
The US-China Business Council has released the key findings of its 2016 annual member survey. For the past 11 years, USCBC has polled its members on their business performance in China and their priority issues.
As companies increasingly use information technology solutions to provide more goods and services to their customers around the world, more and more are reporting concerns about the effects of China’s technology policies on their China-based and multinational companies.
Companies regularly cite licensing as a top challenge for conducting business in China. Over the past decade, the issue has consistently ranked among the top 10 priority issues in the US-China Business Council (USCBC)’s annual membership survey.
USCBC is rolling out a Reform Scorecard on a quarterly basis to assess the actual impact of China’s reforms on foreign company concerns. The scorecard is divided into categories based on key themes for reform, such as the role of the state and the market, foreign investment, institutional reform, and others.
What is a bilateral investment treaty (BIT)? Why do we need them? Who benefits from them? Understanding what BITs do and don’t do is important. The United States and China—the world’s two largest economies—are currently negotiating a BIT, making the issue particularly relevant today.
Transparency—including solicitation of public feedback during the creation of new laws and regulations, open government decision-making, and the ability to access information—is consistently cited as a top concern for US-China Business Council (USCBC) member companies in USCBC’s annual membership survey on China’s business environment.
US-China Business Council (USCBC) member companies have regularly highlighted administrative licensing as a primary concern for the China market. In USCBC’s 2013 member company survey, members ranked administrative licensing as their third most significant concern.
The US-China Business Council (USCBC) represents nearly 220 US companies with significant investments and operations in China and with strong interests in the development of China’s economy and foreign investment regime. We are pleased with the establishment of the China (Shanghai) Pilot Free Trade Zone (FTZ) as a testing ground for further reform in many areas.
Licenses and approvals are essential to doing business in China, as in any other market, and present significant challenges for manufacturing and services providers operating there.
Because of a highly competitive and culturally different operating environment, ensuring adherence to corporate ethics and compliance policies remains a concern for many US companies doing business in China.
