U.S. businesses see ‘impressive financial results’ in China
The political relationship between the U.S. and China may be on the rocks with China's undervalued currency and the trade imbalance. But this relationship doesn't necessarily reflect the opinion of U.S. businesses in China, as Rob Schmitz reports.
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STEVE CHIOTAKIS: During his summit with President Obama this week, Chinese president Hu Jintao is likely to get an earful about China’s undervalued currency, the trade imbalance, the country’s treatment of American businesses. But a survey out today, of U.S. businesses in China shows a different picture.
Marketplace China Bureau Chief Rob Schmitz reports.
ROB SCHMITZ: They complain about DVD piracy and intellectual property violations. They gripe about a market that favors Chinese companies. But U.S. businesses in China are, well, happy.
STEVEN GANSTER: Very impressive financial results — best ever since we’ve been doing this survey.
The American Chamber of Commerce survey coordinator Steven Ganster says companies never made so much money in China. Eight out of ten companies surveyed say they’re very profitable.
GANSTER: The experience level of five, ten, fifteen years in the market have helped companies be a little bit smarter, avoid the stupid mistakes that were made in the past, and know how to win.
But that doesn’t mean they’re content with the rules. Two-thirds of companies surveyed continue to be frustrated about China’s regulatory environment. Many feel that China’s so-called indigenous innovation laws, a national campaign to spur innovation among Chinese companies, is creating an increasingly unfair playing field. But it’s a field nobody intends to leave anytime soon.
In Shanghai, I’m Rob Schmitz for Marketplace.