美中贸易全国委员会-2021中国商业环境调查（英）-21页_3mb

Member Survey Summary: US-China Business Council 2021

Core Content

The 2021 US-China Business Council (US-CBC) Member Survey highlights the ongoing challenges and strategic considerations of US companies operating in China, despite the country's continued commercial success. The survey underscores the impact of geopolitical tensions, regulatory changes, and the lingering effects of the pandemic on business operations.

Main Themes

1. US-China Tensions Continue to Impact Business

• Top Challenge: US-China relations are the number one challenge for US companies in China, a trend that has persisted for four consecutive years.
• Customer Perception: Nearly half of respondents express concerns that customers may perceive them as unreliable due to geopolitical tensions.
• Travel Restrictions: International travel and visa restrictions rank third among top challenges. These restrictions have significantly impacted operations and diplomatic engagements.
• Political Pressure: 45% of companies report feeling pressure to make or avoid political statements, coming from both governments and consumers.

2. Uneven Playing Field and Protectionist Policies

• State Support: Chinese state support for domestic companies, including preferential financing, licensing, and contract access, is seen as a major factor skewing the competitive landscape.
• Protectionism: Protectionist policies such as subsidies, government procurement, and restrictions on foreign investment continue to favor Chinese national champions.
• Media Influence: Negative media coverage in China has emerged as a new indicator of protectionism.
• Licensing Barriers: 37% of respondents report challenges with protectionism in licensing and business approvals.

3. China Remains a Critical Market for US Companies

• Profitability: 95% of respondents report that their China operations were profitable in the past year, with 64% experiencing revenue growth.
• Market Commitment: Over 94% of companies state that their current and future investments in China are aimed at accessing or serving the Chinese market.
• Growth Prospects: 78% of companies view China's growth prospects as better than other emerging markets.

4. Reduced Optimism and Strategic Reassessment

• Optimism Decline: Companies are less optimistic about the business environment in China compared to three years ago.
• Strategic Adjustments: While most companies are not moving operations or supply chains out of China, some are adapting strategies, such as localizing supply chains and shifting away from certain industry segments.
• Future Concerns: Despite current profitability, concerns about future competitiveness persist, especially if geopolitical and policy challenges worsen.

Key Information

Top 10 Challenges Identified by Respondents

1. US-China relations
2. Competition with Chinese companies
3. International travel and visa restrictions
4. Data flows and privacy rules
5. Tariffs
6. Intellectual property protection
7. Export controls and sanctions
8. Licenses and approvals
9. COVID-19 impacts
10. Cost increases

Concerns Around Intellectual Property

• Persistent Issues: Despite reforms, 59% of respondents are somewhat concerned about IP protection, and 26% are very concerned.
• Technology Transfer: Only 5% of respondents were asked to transfer technology in the past year, but it remains a significant concern for those affected.
• Impact on Activities: Companies are limiting their activities in China due to IP concerns, which hinders the full utilization of foreign investment and innovation potential.

Data Localization and Cybersecurity Regulations

• Regulatory Complexity: Companies face challenges in complying with China's rapidly evolving data and privacy regulations, including unclear requirements and burdensome security reviews.
• Extraterritorial Effects: New laws and regulations have extraterritorial implications, complicating operations for multinational firms.
• Compliance Concerns: Over 80% of respondents express concern about data-related policies, with 75% concerned about potential impacts rather than current ones.

Standards Setting

• Access Challenges: Despite commitments in the 2019 Foreign Investment Law, US companies report difficulty in participating in China's standards-setting process.
• Treatment Disparity: Two-thirds of companies feel they receive slightly below equal or unfavorable treatment compared to local firms, with only 25% reporting equal treatment.

Company Performance and Investment Plans

• Profitability: 95% of respondents report profitability in China, with 64% seeing revenue growth.
• Investment Commitment: Over 40% of companies plan to increase resource commitments in China.
• Supply Chain Adjustments: 87% of companies have not moved any segment of their supply chain out of China, with only 2% moving to the US and 12% elsewhere.

Conclusion

The 2021 survey indicates that while US companies continue to operate successfully in China, they face mounting challenges due to geopolitical tensions, protectionist policies, and evolving regulatory environments. Despite these issues, China remains a vital market for US firms, with most continuing to invest and operate there. However, the reduced optimism and increased strategic caution suggest a more cautious approach to long-term business planning in the region.