U.S. Companies Report Continuing Problems Conducting Business In China

Wednesday, January 19, 2011 07:15
U.S. Companies Report Continuing Problems Conducting Business In China

Amid all the hoopla surrounding the Chinese president’s White House visit this week, American business leaders say the business environment for U.S. companies in China remains troubled.

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A survey by the American Chamber of Commerce in Shanghai reveals that a large majority of American businesses in China see little improvement in the business climate and in some cases face deteriorating conditions.

Issues from a continuing failure by the Chinese government to enforce intellectual property rights to rising protectionism are causing concern for U.S. businesses in China, where foreign direct investment continues to grow rapidly.

The Washington Post has an in-depth article tracing the experiences of one manufacturing company in China. Wisconsin-based Manitowoc Co. entered the Chinese market with great optimism only to find barriers at every turn.


Both stories constitute a cautionary tale for advisors interested in investing in China's growth through U.S. companies with Chinese subsidiaries. There are good investments in this sector, to be sure, but it's important to know the potential risks involved and proceed accordingly.


If you wonder why China is drawing so much attention right now, this CNNMoney article details just how much U.S. debt China currently holds.


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