Page 9 - 2018 White Paper on the Business Environment in China
P. 9
The American Chamber of Commerce in South China
the highest populations and FTZ opportunities. Among investment. During the second half of 2017, the central
all the cities in China, the most favored investment government attempted to make foreign investors feel
destinations by companies surveyed are still China’s more comfortable by telling ministries to open up
top-tier cities—Beijing, Shanghai, Guangzhou, and additional sections of the economy to foreign investment.
Shenzhen. Interestingly, this year Guangzhou ranked as So far, Guangdong government is the most responsive
the most popular investment city within a list of 44 cities with the December 2017 release of“Policies and Measures
in China, followed by Shenzhen and Shanghai, and finally of Guangdong Province on Further Expanding Opening-
Beijing. Guangzhou and Shenzhen have worked hard to up and Actively Attracting Foreign Direct Investment
achieve the coveted top spots in our study for the first (FDI)”, commonly known as Ten Measures for Attracting
time. A couple of cities located in the area, however, have FDI. Guangdong government is showing a more open
sunk to the bottom of the list because they are focused approach toward foreign investment, particularly in
on taking land that rightfully belongs to foreign-invested attracting high-level talent. The further opening of
enterprises. These cities are attempting to make quick additional sections of the economy to foreign investment
profits from real estate development rather than focusing is one of the many reasons why American businesses
on the future by keeping those enterprises and their considered China to be a reliable source of profit growth.
newly developed technologies. Our businesses benefited from a Chinese economy that
is growing at almost 7%—several times the rate of U.S.
American investments help China by creating jobs expansion. We believe this is a step in the right direction,
and other economic advances; however, some foreign- but we reserve our full confidence until the new polices
invested enterprises believe they may have become a are fully implemented.
victim to their own success. China’s growing economic
nationalism maintains that foreign companies are no We believe the playing field between foreign and
longer necessary for continued domestic prosperity. domestic companies is not equal, and fair play is
The numbers just do not support this premise. Foreign necessary for the continued growth in foreign investment
investment remains a primary driver of the Chinese in China. It is becoming more crucial for the chambers of
economy, and our members have declared over the past commerce to continue promoting the value and mutual
few studies that governmental entities were increasingly benefits that foreign investment and foreign companies
stacking the cards against them. bring to China. Noting the importance of FTZs in his
opening report of the 19th National Congress of the
One of the major concerns we unpack in this edition Communist Party of China, President Xi Jinping said the
of the White Paper is the problem with cybersecurity. The government will explore the opening of free trade ports,
cybersecurity law that came into force on June 1, 2017 and even more importantly that all businesses registered
may have reflected China’s determination to secure its in China will be treated equally. We applaud President
cyberspace and protect Chinese citizens against data theft, Xi’s words and thoughts. China wants continual and
but some Western observers worried that the new law sustainable growth, but the country cannot do it alone.
targeted foreign enterprises by restricting the cross-border China needs continued foreign investment as much as
flow of information, which could give Chinese companies our members need China. We are willing to do our part so
an unfair advantage. The cybersecurity concerns escalated that we can all profit together. China needs to let us do it
with a clampdown Virtual Private Network (VPN). This by heeding the words of President Xi.
action appeared to shutter one of the main ways in which
people, both local and foreign, manage to access the With best regards,
global, unfiltered web on a daily basis. While VPNs are
widely used by businesses and individuals to view banned Dr. Harley Seyedin
websites, the technology operates in a legal gray area. It’s President, American Chamber of Commerce in South China
unclear how the new directive may affect multinationals Vice Chairman, U.S.-China Trade and Investment Policy, APCAC
operating within the country. Winner of the 2017 Oslo Business for Peace Award
Awarded by the Award Committee of Nobel Laureates in Peace and Economics
In spite of all of this, the good news this year is that
foreign companies are more optimistic. Both the central 9
and local governments are giving signals that they
will open up the market and welcome more foreign
the highest populations and FTZ opportunities. Among investment. During the second half of 2017, the central
all the cities in China, the most favored investment government attempted to make foreign investors feel
destinations by companies surveyed are still China’s more comfortable by telling ministries to open up
top-tier cities—Beijing, Shanghai, Guangzhou, and additional sections of the economy to foreign investment.
Shenzhen. Interestingly, this year Guangzhou ranked as So far, Guangdong government is the most responsive
the most popular investment city within a list of 44 cities with the December 2017 release of“Policies and Measures
in China, followed by Shenzhen and Shanghai, and finally of Guangdong Province on Further Expanding Opening-
Beijing. Guangzhou and Shenzhen have worked hard to up and Actively Attracting Foreign Direct Investment
achieve the coveted top spots in our study for the first (FDI)”, commonly known as Ten Measures for Attracting
time. A couple of cities located in the area, however, have FDI. Guangdong government is showing a more open
sunk to the bottom of the list because they are focused approach toward foreign investment, particularly in
on taking land that rightfully belongs to foreign-invested attracting high-level talent. The further opening of
enterprises. These cities are attempting to make quick additional sections of the economy to foreign investment
profits from real estate development rather than focusing is one of the many reasons why American businesses
on the future by keeping those enterprises and their considered China to be a reliable source of profit growth.
newly developed technologies. Our businesses benefited from a Chinese economy that
is growing at almost 7%—several times the rate of U.S.
American investments help China by creating jobs expansion. We believe this is a step in the right direction,
and other economic advances; however, some foreign- but we reserve our full confidence until the new polices
invested enterprises believe they may have become a are fully implemented.
victim to their own success. China’s growing economic
nationalism maintains that foreign companies are no We believe the playing field between foreign and
longer necessary for continued domestic prosperity. domestic companies is not equal, and fair play is
The numbers just do not support this premise. Foreign necessary for the continued growth in foreign investment
investment remains a primary driver of the Chinese in China. It is becoming more crucial for the chambers of
economy, and our members have declared over the past commerce to continue promoting the value and mutual
few studies that governmental entities were increasingly benefits that foreign investment and foreign companies
stacking the cards against them. bring to China. Noting the importance of FTZs in his
opening report of the 19th National Congress of the
One of the major concerns we unpack in this edition Communist Party of China, President Xi Jinping said the
of the White Paper is the problem with cybersecurity. The government will explore the opening of free trade ports,
cybersecurity law that came into force on June 1, 2017 and even more importantly that all businesses registered
may have reflected China’s determination to secure its in China will be treated equally. We applaud President
cyberspace and protect Chinese citizens against data theft, Xi’s words and thoughts. China wants continual and
but some Western observers worried that the new law sustainable growth, but the country cannot do it alone.
targeted foreign enterprises by restricting the cross-border China needs continued foreign investment as much as
flow of information, which could give Chinese companies our members need China. We are willing to do our part so
an unfair advantage. The cybersecurity concerns escalated that we can all profit together. China needs to let us do it
with a clampdown Virtual Private Network (VPN). This by heeding the words of President Xi.
action appeared to shutter one of the main ways in which
people, both local and foreign, manage to access the With best regards,
global, unfiltered web on a daily basis. While VPNs are
widely used by businesses and individuals to view banned Dr. Harley Seyedin
websites, the technology operates in a legal gray area. It’s President, American Chamber of Commerce in South China
unclear how the new directive may affect multinationals Vice Chairman, U.S.-China Trade and Investment Policy, APCAC
operating within the country. Winner of the 2017 Oslo Business for Peace Award
Awarded by the Award Committee of Nobel Laureates in Peace and Economics
In spite of all of this, the good news this year is that
foreign companies are more optimistic. Both the central 9
and local governments are giving signals that they
will open up the market and welcome more foreign
