More U.S. Companies Feel Unwelcome in China - WSJ.com
By ANDREW BROWNE And LORETTA CHAO
BEIJING—A growing number of U.S. companies feel unwelcome in China, according to a new survey by the American Chamber of Commerce in China, as measures aimed at squeezing foreign technology companies out of the vast government-procurement market start to bite.
The survey of Amcham’s members adds to evidence of a darkening mood among multinational companies in one of their most important global markets.
Negative sentiment among Amcham’s members, which traditionally have been a strong lobby in Washington arguing for more engagement with China, adds to wider risks in U.S.-China relations.
So far, there’s little evidence that American companies are alarmed enough to pull out. But people with close links to the U.S. business community in China say a number of multinationals are starting to rethink their strategy.
Amcham’s survey polled 203 members about planned government-procurement regulations, and also repeated a question asked in annual surveys about the general business climate.
The percentage of companies that feel they are unwelcome to participate and compete in the Chinese market jumped to 38%from 26% in the 2009 annual survey released in December, from and 23% in 2008.
In October, three Chinese ministries posted a notice requiring technology vendors to gain accreditation for products before they could be included in a government-procurement catalog of products containing “indigenous innovation.”
Among technology companies questioned about the new policy, 57% said they believed it would negatively affect China operations in the future; 37% said it was already having an impact.
Chinese officials deny the policy discriminates against foreign companies.
Printed in The Wall Street Journal, page A16
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