The survey of US companies said inconsistent and unclear policies and enforcement, rising labor costs and data security issues were other top concerns. It also said that, despite the insistence of Chinese leaders that Beijing welcomes foreign businesses, many still are hindered from free competition.
More recently, US Treasury Secretary Janet Yellen visited Beijing, where she raised concerns that potential overcapacity in Chinese industries—such as electric vehicles, steel making and solar panels—might crowd out US and other foreign manufacturers. Despite the relative improvement in China-US ties, American companies are dealing with slow progress from the Chinese government on promises to level the playing field between foreign and Chinese companies, the report said. On the other hand, heightened export controls and other restrictions from the US government have raised the cost of compliance.
Still, many members of the American Chamber said they were more optimistic about growth of China’s own economy. Such requests follow repeated raids on foreign companies that Chinese authorities say were conducted on national security grounds.