US businesses pessimistic about operating in China

Beijing

AS the United States and China wrapped up talks this week touting bilateral cooperation on strategic and economic issues, many in the US business community say the annual dialogue is delivering diminishing returns in resolving commercial disputes.

Foreign business in China is growing increasingly pessimistic, in part due to the country's slowing economy, but also because of growing fears of protectionism and rules that companies think could make it harder to operate there.

Concerns include draft regulations for China's insurance and banking industries and a pending cybersecurity law that business groups say could limit sales for foreign companies in favour of domestic competitors.

Beijing's Made in China 2025 plan also calls for a progressive increase in domestic components in sectors such as advanced information technology and robotics, and President Xi Jinping has pledged to increase government support for technology companies, raising concerns that foreign providers will be at a disadva…