Page 4 - THE SOUTH CHINA BUSINESS JOURNAL
P. 4
ITOR'S NOTE Dear Members, expressed my continued confidence in the Guangdong
Greetings, business environment when AmCham South China,
Dr. Harley Seyedin I hope you are enjoying a happy and healthy new in collaboration with Guangdong Department of
Commerce and Guangdong Department of Justice,
President, AmCham South China year of the Ox. As its first major event of the Chinese organized a meeting to facilitate the draft of
Winner of the 2017 Oslo New Year, on February 26 AmCham South China Regulations on the Protection of Rights and Interests
Business for Peace Award released its 649-page bilingual 2021 White Paper of Foreign Investment in Guangdong Province.
Awardedby theAwardCommitteeof on the Business Environment in China and its 148-
NobelLaureates inPeaceand Economics page bilingual 2021 Special Report on the State of Alas, foreign business in China still face multiple
Visiting Scholar, Jinan University Business in South China. The annual research projects issues that will take time to solve. I agree with a
involved more than six months and a team of highly recent assessment made by Kurt Campbell, chairman
accomplished experts from both sides of the Pacific of the Asia Group and Indo-Pacific coordinator of US
Ocean, including seven who hold doctoral degrees, President Joe Biden’s National Security Council. I have
as well as respected professors, senior business heard from both Chinese and American speakers that
executives and legal and financial scholars. the watchword for the US-China relationship is likely to
be “competition.” And there will be an attempt, I hope,
This year’s release was attended by over 400 that the modifier in front of that will be “stable.” Stable
interested parties including government officials, competition. It won’t be easy for I anticipate great
business executives and members of media. Over challenges ahead of us. The most important thing for
forty foreign consulates were represented, mostly our countries to do is to work together when we can
by their consuls general. One consul general of a and keep the table open when our understandings
western country commented “I find it imperative clash.
to attend AmCham South China events as I cannot
imagine anyone having the pulse of the South Already, progress being made by the Biden
China business community without it”. The results administration’s US Secretary of State Antony Blinken.
of the two studies have since been covered by In every major foreign policy issue including China,
several thousand media outlets with an audience Secretary Blinken has a recurring mantra: the US
reach of over 700 million in China and an additional should work with its allies and within international
186 million around the world. Major media outlets treaties and organizations. Blinken also views US
covering the release included Nikkei, AP, South leadership in multilateral institutions as essential.
China Morning Post, State Street and most US and “There is a premium still, and in some ways even more
international social media portals and in China by than before, on American engagement, on American
CGTN, Xinhua News Agency, China Daily, Shenzhen leadership,” Blinken said in 2020.
TV, etc.
The top American diplomat spoke in early February
These two very important annual publications with China’s top diplomat Yang Jiechi in the first major
include qualitative and quantitative research that exchange between the countries since President Joe
focus on what foreign companies plan to do in Biden took office and touched on several critical issues
China in 2021. Previous editions broke new ground that have strained their ties. Two statements released
in predicting the US-China trade war a year before by the leaders concerning the phone call reaffirmed
it happened and then initiating conversations the different positions of the countries. US-China
concerning a new judicial vehicle where foreign relations have fallen to new lows in the past few years,
companies could express their grievances that was accelerated in part by former President Donald Trump
implemented by the Chinese state government. An starting a trade war and other issues. Yang said that
interesting finding of the 2021 Special Report is the at present, “the Sino-US relationship is at a crucial
direct connection between the reduced number juncture,” and that the Chinese government’s policy
of expatriate executives in China and the massive towards the US has “always maintained a high degree
reduction in the number of very large planned of stability and continuity.” He urged Washington to
reinvestments. While total amount of budgeted “work with China to uphold the spirit of non-conflict,
reinvestments has held steady and number of large, non-confrontation, mutual respect, and win-win
medium and small reinvestment projects have cooperation and focus on cooperation, manage
increased slightly, the number of very large projects differences as well as promote the healthy and stable
involving 250 million US dollars or more each have development of China-US relations.”
reached the lowest levels in several years (a 2/3rd
reduction). We predict that this will severely impact To gain credibility in negotiations with China
China’s manufacturing output two to three years from and other nations, it is important that Blinken’s
now. What we have also found this year is that even negotiations be based on decisions which can be
after the coronavirus derailed trade, few businesses supported by accurate statistics. While all stakeholders
want to leave China’s massive market, skilled call for further opening up of the Chinese market, and
workforce, and efficient suppliers of raw materials to China has announced that it plans to do so, China’s
move to other countries. We could not find a single economy may already be far more open than believed.
company with immediate plans to pull out of China A 16 months study by Professor Michael Enright of
completely. You can read more in this month’s cover the University of Hong Kong (former faculty at the
story and download both publications free of charge Harvard Business School) on the impact of foreign
at AmCham South China’s homepage www.amham- invested enterprises on China’s economy using FDI,
southchina.org. spending by employees and some other factors shows
that on the average, across China foreign invested
2021 marks the year of key milestones for China – it enterprises (FIEs) produce 33% of China’s GDP and 27%
is the starting point for the 14th Five-Year-Plan and of employment. Given the fact that FIEs are primarily
the centenary anniversary of the Chinese Communist concentrated on the east and southern costs of China,
Party (CCP). Market watchers should expect policy their impact on the economies of eastern and southern
agendas amplified to meet long-running targets cities is far greater than believed.
that will match the sense of occasion. Our Special
Report showed for the fourth year in a row that At least both sides are now at the point where they
Guangzhou is the number one destination for agree on the need to return to stability. Nothing will do
businesses in China. With those things in mind, I this faster than a return to the negotiating table.
Greetings, business environment when AmCham South China,
Dr. Harley Seyedin I hope you are enjoying a happy and healthy new in collaboration with Guangdong Department of
Commerce and Guangdong Department of Justice,
President, AmCham South China year of the Ox. As its first major event of the Chinese organized a meeting to facilitate the draft of
Winner of the 2017 Oslo New Year, on February 26 AmCham South China Regulations on the Protection of Rights and Interests
Business for Peace Award released its 649-page bilingual 2021 White Paper of Foreign Investment in Guangdong Province.
Awardedby theAwardCommitteeof on the Business Environment in China and its 148-
NobelLaureates inPeaceand Economics page bilingual 2021 Special Report on the State of Alas, foreign business in China still face multiple
Visiting Scholar, Jinan University Business in South China. The annual research projects issues that will take time to solve. I agree with a
involved more than six months and a team of highly recent assessment made by Kurt Campbell, chairman
accomplished experts from both sides of the Pacific of the Asia Group and Indo-Pacific coordinator of US
Ocean, including seven who hold doctoral degrees, President Joe Biden’s National Security Council. I have
as well as respected professors, senior business heard from both Chinese and American speakers that
executives and legal and financial scholars. the watchword for the US-China relationship is likely to
be “competition.” And there will be an attempt, I hope,
This year’s release was attended by over 400 that the modifier in front of that will be “stable.” Stable
interested parties including government officials, competition. It won’t be easy for I anticipate great
business executives and members of media. Over challenges ahead of us. The most important thing for
forty foreign consulates were represented, mostly our countries to do is to work together when we can
by their consuls general. One consul general of a and keep the table open when our understandings
western country commented “I find it imperative clash.
to attend AmCham South China events as I cannot
imagine anyone having the pulse of the South Already, progress being made by the Biden
China business community without it”. The results administration’s US Secretary of State Antony Blinken.
of the two studies have since been covered by In every major foreign policy issue including China,
several thousand media outlets with an audience Secretary Blinken has a recurring mantra: the US
reach of over 700 million in China and an additional should work with its allies and within international
186 million around the world. Major media outlets treaties and organizations. Blinken also views US
covering the release included Nikkei, AP, South leadership in multilateral institutions as essential.
China Morning Post, State Street and most US and “There is a premium still, and in some ways even more
international social media portals and in China by than before, on American engagement, on American
CGTN, Xinhua News Agency, China Daily, Shenzhen leadership,” Blinken said in 2020.
TV, etc.
The top American diplomat spoke in early February
These two very important annual publications with China’s top diplomat Yang Jiechi in the first major
include qualitative and quantitative research that exchange between the countries since President Joe
focus on what foreign companies plan to do in Biden took office and touched on several critical issues
China in 2021. Previous editions broke new ground that have strained their ties. Two statements released
in predicting the US-China trade war a year before by the leaders concerning the phone call reaffirmed
it happened and then initiating conversations the different positions of the countries. US-China
concerning a new judicial vehicle where foreign relations have fallen to new lows in the past few years,
companies could express their grievances that was accelerated in part by former President Donald Trump
implemented by the Chinese state government. An starting a trade war and other issues. Yang said that
interesting finding of the 2021 Special Report is the at present, “the Sino-US relationship is at a crucial
direct connection between the reduced number juncture,” and that the Chinese government’s policy
of expatriate executives in China and the massive towards the US has “always maintained a high degree
reduction in the number of very large planned of stability and continuity.” He urged Washington to
reinvestments. While total amount of budgeted “work with China to uphold the spirit of non-conflict,
reinvestments has held steady and number of large, non-confrontation, mutual respect, and win-win
medium and small reinvestment projects have cooperation and focus on cooperation, manage
increased slightly, the number of very large projects differences as well as promote the healthy and stable
involving 250 million US dollars or more each have development of China-US relations.”
reached the lowest levels in several years (a 2/3rd
reduction). We predict that this will severely impact To gain credibility in negotiations with China
China’s manufacturing output two to three years from and other nations, it is important that Blinken’s
now. What we have also found this year is that even negotiations be based on decisions which can be
after the coronavirus derailed trade, few businesses supported by accurate statistics. While all stakeholders
want to leave China’s massive market, skilled call for further opening up of the Chinese market, and
workforce, and efficient suppliers of raw materials to China has announced that it plans to do so, China’s
move to other countries. We could not find a single economy may already be far more open than believed.
company with immediate plans to pull out of China A 16 months study by Professor Michael Enright of
completely. You can read more in this month’s cover the University of Hong Kong (former faculty at the
story and download both publications free of charge Harvard Business School) on the impact of foreign
at AmCham South China’s homepage www.amham- invested enterprises on China’s economy using FDI,
southchina.org. spending by employees and some other factors shows
that on the average, across China foreign invested
2021 marks the year of key milestones for China – it enterprises (FIEs) produce 33% of China’s GDP and 27%
is the starting point for the 14th Five-Year-Plan and of employment. Given the fact that FIEs are primarily
the centenary anniversary of the Chinese Communist concentrated on the east and southern costs of China,
Party (CCP). Market watchers should expect policy their impact on the economies of eastern and southern
agendas amplified to meet long-running targets cities is far greater than believed.
that will match the sense of occasion. Our Special
Report showed for the fourth year in a row that At least both sides are now at the point where they
Guangzhou is the number one destination for agree on the need to return to stability. Nothing will do
businesses in China. With those things in mind, I this faster than a return to the negotiating table.
