Why AmCham's latest survey says nothing new
February 23, 2012 | BY
clpstaff &clp articles &AmCham's latest China Business Report has some shocking statistics, but contains little that is new. Although companies keep complaining about China's legal system, 77% plan to increase their investments.
Last week, the American Chamber of Commerce in Shanghai released its annual China Business Report. The survey showed that 69% of respondents believed China's IP enforcement had not changed or even deteriorated in the past year. One percent more felt the same way about China's legal and regulatory environments. A whopping 90% saw rising costs as a hindrance to business.
The statistics for IP enforcement are surprising. The Chinese Government has made a determined effort to improve not only legislation, but also enforcement. However, as has always been the case in China a strong IP strategy is the key to enforcing these rights. Both domestic and international law firms pride and sell themselves on their ability to deliver a comprehensive IP strategy that suits a corporation's needs. 
“China is a difficult place in which to do business, in part because the country's legal framework is still in the process of being built,” the survey also noted. The legal environment in China is complex. Lawyers often complain about the regulatory situation. Despite the system, domestic companies manage to weave their way through it and come out hugely successful and profitable. It is easier for the domestic companies as they only know China's legal system, US companies can be hindered by their knowledge of US law and belief that this is how things should be done everywhere.
Although rising costs are a hindrance to doing business, the corporations cannot expect the tier one cities like Beijing and Shanghai to remain inexpensive. China's rise revolves around a plan that began in the eastern regions, has moved to central China and is now beginning to modernise the western provinces. Companies are already looking and moving to the interior. Fashion retailer Gap is considering stores in Chongqing and Chengdu. Companies will inevitably move inwards – this is not a difficulty in doing business in China, rather it is falling in line with the government's long-established plans for its country.
By David Tring
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