Page 9 - 2019 White Paper on the Business Environment in China
P. 9
The American Chamber of Commerce in South China
US and other foreign companies provide contributions Currently, very few channels exist where foreign
that have not been quantified to date. These include: companies can seek arbitration outside the control
benefitstoChineseconsumersandcustomers;highindustry and influence of the low-level municipal government.
standards of safety and quality establishment; benefits These same entities often have financial connections
generated by the sourcing activities; modernization and to the domestic party in question. With a free license to
development of industries; establishment of supplier and kill given to these low-level municipal governments—
distribution networks; technology development; modern and their right as the company executive, judge, jury
business practices and management; sustainability and enforcer—complaints by foreign companies are
practices; corporate social responsibility (CSR) initiatives; not treated fairly. Under the current process, any issue
and, many others. elevated to a higher-level Chinese government by our
companies is sent by the higher-level to the very culprit
China released some interesting statistics in September lower-level government for adjudication.
2018 that suggests the US economic cooperation with
China has created a large number of business opportunities We urge the central government to create a new
and significant profits for American businesses. China was judicial venue/vehicle where foreign companies can
one of the top five export markets of goods for 46 states lodge complaints and where the oversight is designated
in the US, and on average, every US farmer exported over by the central government just as it is with the IPR Courts.
US$10,000 of agricultural products to China. A total of 3.04 Without concrete steps by the central government, at
million American passenger vehicles were sold in China, some point, the pressure cooker lid will explode as it did
accounting for 12.3 percent of all passenger vehicles sold with the US-China trade tension. Until then, we must
in China. General Motors alone has ten joint ventures brace ourselves for the next time the pressure builds and
in in the country. Its output in China accounted for 40 another set of disputes arise between other nations and
percent of its global output. US multinational companies China. The China central government must create greater
have sharpened their international competitiveness barriers that separate government-owned and partially-
by combining competitive factors of production in the owned businesses from low-level municipal judicial
two countries. The iPhone is a perfect illustration. It is systems. These judicial systems must be free from outside
designed in the US, manufactured and assembled in influences so that they are able to interpret laws and civil
China, and sold all over the world. By manufacturing in suits objectively and fairly.
China, US companies are freer to invest more money and
resources in innovation and management, focus on high- With best regards,
end manufacturing and modern services, and upgrade its
industry with more added-value and high technology. Dr. Harley Seyedin
President, American Chamber of Commerce in South China
As the President of a Chamber representing more than Winner of the 2017 Oslo Business for Peace Award
2,300 members, it is clear to me that the vast majority Awarded by the Award Committee of Nobel Laureates in Peace and Economics
of problems foreign companies are facing in China are Visiting Scholar, Jinan University, Guangzhou, PRC
not related to central government issues. Many of these President, Allelon Energy Partners
problems are a direct result of unfair treatment by low-level
municipal governments and the fact that rarely is there a
proper channel or venue where a foreign entity can get a
fair hearing and treatment according to the rule of law. Too
often the line between a company and the government is
not just blurred but totally erased by lower-level municipal
judicial systems when foreign business entities have legal
problems with their joint venture counterparts. Basically,
the old saying “you can’t fight city hall” becomes the rule
of law.
9
US and other foreign companies provide contributions Currently, very few channels exist where foreign
that have not been quantified to date. These include: companies can seek arbitration outside the control
benefitstoChineseconsumersandcustomers;highindustry and influence of the low-level municipal government.
standards of safety and quality establishment; benefits These same entities often have financial connections
generated by the sourcing activities; modernization and to the domestic party in question. With a free license to
development of industries; establishment of supplier and kill given to these low-level municipal governments—
distribution networks; technology development; modern and their right as the company executive, judge, jury
business practices and management; sustainability and enforcer—complaints by foreign companies are
practices; corporate social responsibility (CSR) initiatives; not treated fairly. Under the current process, any issue
and, many others. elevated to a higher-level Chinese government by our
companies is sent by the higher-level to the very culprit
China released some interesting statistics in September lower-level government for adjudication.
2018 that suggests the US economic cooperation with
China has created a large number of business opportunities We urge the central government to create a new
and significant profits for American businesses. China was judicial venue/vehicle where foreign companies can
one of the top five export markets of goods for 46 states lodge complaints and where the oversight is designated
in the US, and on average, every US farmer exported over by the central government just as it is with the IPR Courts.
US$10,000 of agricultural products to China. A total of 3.04 Without concrete steps by the central government, at
million American passenger vehicles were sold in China, some point, the pressure cooker lid will explode as it did
accounting for 12.3 percent of all passenger vehicles sold with the US-China trade tension. Until then, we must
in China. General Motors alone has ten joint ventures brace ourselves for the next time the pressure builds and
in in the country. Its output in China accounted for 40 another set of disputes arise between other nations and
percent of its global output. US multinational companies China. The China central government must create greater
have sharpened their international competitiveness barriers that separate government-owned and partially-
by combining competitive factors of production in the owned businesses from low-level municipal judicial
two countries. The iPhone is a perfect illustration. It is systems. These judicial systems must be free from outside
designed in the US, manufactured and assembled in influences so that they are able to interpret laws and civil
China, and sold all over the world. By manufacturing in suits objectively and fairly.
China, US companies are freer to invest more money and
resources in innovation and management, focus on high- With best regards,
end manufacturing and modern services, and upgrade its
industry with more added-value and high technology. Dr. Harley Seyedin
President, American Chamber of Commerce in South China
As the President of a Chamber representing more than Winner of the 2017 Oslo Business for Peace Award
2,300 members, it is clear to me that the vast majority Awarded by the Award Committee of Nobel Laureates in Peace and Economics
of problems foreign companies are facing in China are Visiting Scholar, Jinan University, Guangzhou, PRC
not related to central government issues. Many of these President, Allelon Energy Partners
problems are a direct result of unfair treatment by low-level
municipal governments and the fact that rarely is there a
proper channel or venue where a foreign entity can get a
fair hearing and treatment according to the rule of law. Too
often the line between a company and the government is
not just blurred but totally erased by lower-level municipal
judicial systems when foreign business entities have legal
problems with their joint venture counterparts. Basically,
the old saying “you can’t fight city hall” becomes the rule
of law.
9
