Despite the clear benefits of foreign direct investment, access to China’s markets remains relatively restricted, and many of the deals that bring Chinese investment into the US could not happen in reverse, the American Chamber of Commerce in China said in its newly released 2017 American Business in China White Paper today. With uncertainty stemming from political and economic transitions in both the US and China, perceptions of a deteriorating investment environment for foreign companies in China, and a slowing economy, 2017 will likely be one of the most challenging years in decades for US companies in China, it said.
“We are experiencing a clear increase in uncertainty as the US-China relationship enters a new era, and multinational companies spanning this relationship, both American and Chinese, are paying close attention to developments as they make their plans,” said William Zarit, Chairman of the American Chamber of Commerce in China. “Nevertheless, it is becoming apparent that many things need to change in the bilateral relationship. We hope that the recent meeting between the presidents of the two countries will mark the start of tangible progress toward a healthier, more balanced relationship.”