China has the power to control and even hamper business conducted by American companies. According to one news post, China has vamped up its regulations. They have also increased surprise inspections concerning American businesses. This is motivating American legislators to act.
U.S. officials are attempting to safeguard the assets of American companies doing business in China. Congressional representatives from both major parties recently reintroduced legislation similar to that already introduced in the U.S. Senate. Such legislation would presumably protect the assets of these businesses.
The Economic Times quotes one congressman as saying that the legislation would “correct our trade imbalances with China and give American workers a level playing field to compete and succeed.”
What would such legislation protect?
The design of the legislation is to protect business assets from seizure in China. There is concerns in the U.S. House that certain Chinese initiatives are in place to drive American companies out of business. This would result in transference of technology and jobs to China.
The current legislation would ban selling of intellectual property to China that could impact U.S. security concerns. Apparently, it would put an end to other illegal trade practices as well. Finally, it would ensure payment by Chinese of additional taxes.
Hopefully, such legislation will motivate Chinese officials to respect the interests of American companies. Doing business in China has proven so complex that many American businesses are hesitant to make further investments in that country. However, the market in China is simply too big to ignore. In times of flux, American companies will continue to need to avail themselves to counsel who understands the culture and business laws present in China.