The President and CEO of the American Chamber of Commerce in China, Thomas J. Donohue, stated on May 24 in Shanghai that American companies operating in China are generally satisfied with their investment experiences, but he also noted that more American businesses are becoming concerned about certain policies in China that are unfavorable to foreign investment.
Donohue indicated that American companies in China are particularly focused on the independent innovation and government procurement policies introduced by China, including the government procurement list, manufacturing standards, tax measures, and mandatory certification requirements. He stated, “These rules seem designed to force technology transfer from other countries and will restrict foreign competition.”
Donohue mentioned that the American Chamber of Commerce will continue to oppose any form of protectionism domestically, and the American market will remain open to Chinese products and investments.
In November 2009, the Ministry of Science and Technology, the National Development and Reform Commission, and the Ministry of Finance jointly issued a notice regarding the implementation of the 2009 National Independent Innovation Product Recognition Work. This notice required suppliers to obtain product recognition before being included in the "Government Procurement Independent Innovation Product Catalog". All declared products must possess Chinese intellectual property rights and independent brands, and the applicant's intellectual property rights must be completely independent of overseas institutions or individuals.
This year, China has partially relaxed the government-promoted "independent innovation" standards for high-tech product procurement, only requiring that products on the government procurement list comply with Chinese laws and regulations, and that the applicant possesses or has the right to use the intellectual property rights for the product in China.
On the morning of May 24, Vice Premier Wang Qishan stated during the economic dialogue under the second round of the China-U.S. Strategic and Economic Dialogue that China hopes to see the United States gradually eliminate barriers to high-tech exports to China, treat Chinese investment enterprises in the U.S. equally, and make substantial commitments and concessions regarding the recognition of China's market economy status.
U.S. Secretary of Commerce Gary Locke recently stated: “As we share and sell American technology to other countries, we must also create job opportunities in the United States. Therefore, throughout this trip and in future China-U.S. Strategic and Economic Dialogues, we will raise our concerns regarding the 'independent innovation' policy with various levels of the Chinese government.”
The American Chamber of Commerce in China expressed similar concerns in its annual business environment survey released in April. In the survey, the American Chamber of Commerce in China indicated that recent government procurement incentives promoting independent innovation have drawn the attention of American companies in China. Already, 28% of companies reported business losses due to these policies, and over 40% of companies indicated that they expect to be adversely affected once these policies are fully implemented. Among the American high-tech companies involved in these policies, 57% stated that they anticipate losing business due to these policies.
Despite the concerns among American companies, the survey shows that American businesses in China remain optimistic about China's economic development and investment opportunities, with nearly 80% of American companies in China planning to increase their investments in the Chinese market in 2010.