Among the things that can have significant impacts on U.S. companies that invest in or have operations in China is the overall business environment in China. A recent report indicates that this environment might be a particularly challenging one for U.S. companies these days.

The report was by the American Chamber of Commerce in China. According to the report, a variety of factors have led to the business environment in China for U.S. companies being an especially difficult one lately. These factors include:

  • The slow pace of market opening.
  • The slow pace of economic reforms.
  • Investment barriers.
  • Slowing growth.
  • Perceived hostility towards foreign companies.
  • Political/economic transitions.

In recent times, U.S. companies have shown an increased likelihood of indicating they have felt less welcome in China. Also, the pace of investment in China by U.S. businesses in China has reportedly slowed.

One wonders what sorts of changes the future will see when it comes to the business environment in China for foreign companies. Do you think the environment will end up improving?

Another thing that can be very impactful for U.S. companies when they are engaging in business in China is what legal guidance they have. In addition to challenges arising out of the general business environment in China, there are a wide range of unique legal challenges that U.S. companies can face when it comes to their Chinese operations and investments. These challenges could touch on all manner of key aspects of a company’s business efforts in China. So, when responding to these challenges, a U.S. company may want the advice and guidance of an attorney with a detailed understanding of the various legal aspects of doing business in China and with experience in helping companies navigate legal matters in China.

Source: Bloomberg, “U.S. Firms in China Face Worst Conditions in Decades: AmCham,” April 17, 2017