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US Commerce Secretary Gina Raimondo’s Statement on China
Yes, that’s correct. US Commerce Secretary Gina Raimondo said on Tuesday that American companies have told her that China has become “Uninvestable” because of the risks posed by the Chinese government’s actions.
Raimondo made the comments during a visit to China, where she met with Chinese officials to discuss trade and economic relations. She said that US companies are concerned about the Chinese government’s increasing use of fines, raids, and other measures to target foreign businesses. She also said that companies are worried about the Chinese government’s opaque regulatory environment and its lack of respect for intellectual property rights.
Raimondo’s comments are a sign of the growing concerns that US companies have about doing business in China. The Chinese government has been taking a more aggressive approach to regulating foreign businesses in recent years, and this has made it more difficult and riskier for companies to operate in China.
The Chinese government has denied that it is trying to drive away foreign businesses. However, Raimondo’s comments suggest that the Chinese government needs to do more to address the concerns of US companies if it wants to maintain its attractiveness as a destination for overseas investment.
Specific Concerns US Companies have about doing Business in China:
- Intellectual property theft: The Chinese govt has been accused of widespread intellectual property theft, which has cost US companies billions of dollars.
- State-owned enterprises: Chinese state-owned enterprises (SOEs) enjoy unfair advantages over private businesses, which makes it difficult for foreign companies to compete.
- Opaque regulatory environment: The Chinese government’s regulatory environment is often opaque and unpredictable, which makes it difficult for foreign companies to comply with the law.
- Raids and fines: The Chinese government has been known to raid the offices of foreign businesses and impose fines without due process.
- Data security: The Chinese government has been accused of using data collected from foreign businesses for its own purposes, such as spying.
These concerns have led many US companies to reconsider their investments in China. In recent years, there has been a decline in the number of new US investments in China.
The Chinese government has taken some steps to address the concerns of US companies. But it is not clear if these measures will be enough to reverse the trend. The Chinese government needs to do more to create a level playing pitch for foreign businesses. And also to protect intellectual property rights. It also needs to make its regulatory environment more transparent and predictable.
Only time will tell if the Chinese government is willing to make the necessary changes to attract more foreign investment.
To read more click On this link: https://www.aljazeera.com/news/2023/8/29/us-commerce-secretary-says-companies-see-china-as-uninvestable