Tough road ahead for reform in China

THROUGH the many years that American businesses have been in China, we have supported, contributed to, and witnessed firsthand the incredible transformation that has occurred in the country. After 35 years of breathtaking growth, China has re-established its place among the world's great nations.

However, while China largely avoided the immediate turmoil created by the global financial crisis, there is now a clear understanding that the past economic model has run its course and China has unique and severe structural economic issues to address.

The American Chamber of Commerce in China represents 1,000 companies operating across China, and many of them are still finding ways to grow and earn profits. However, growth is slowing, costs are rising and despite optimism for the short-term business outlook in various sectors, companies are increasingly cautious about future investments, as revenue and profitability growth decrease.