U.S. Firms Feel Shut Out in China

[Omaha Steve]

Source: Wall Street Journal

By ANDREW BROWNE And LORETTA CHAO

BEIJING—A growing number of U.S. companies feel unwelcome in China, according to a new survey by the American Chamber of Commerce in China, as measures aimed at squeezing foreign technology companies out of the vast government-procurement market start to bite.

The survey of Amcham's members adds to evidence of a darkening mood among multinational companies in one of their most important global markets.

Negative sentiment among Amcham's members, which traditionally have been a strong lobby in Washington arguing for more engagement with China, adds to wider risks in U.S.-China relations. On Sunday, China's commerce minister, Chen Deming, warned that China "will not sit back" if the U.S. Treasury Department labels China a currency manipulator and trade sanctions follow.

Washington has been piling pressure on China to let its currency rise against the dollar in order to make its exports more expensive and narrow its trade surplus with the U.S. Other contentious issues include the U.S.'s arms sales to Taiwan and a recent meeting between President Barack Obama and the Dalai Lama, the Tibetan spiritual leader whom Beijing accuses of "splittism."

Read more: http://online.wsj.com/article/SB10001424052748704454004575135313221347420.html?mod=googlenews_wsj

[Hello_Kitty]

1. But gosh, we mustn't put higher tariffs on their goods, lest we risk a trade war!

:sarcasm:

[Downwinder]

2. Worse than that, they might quit supporting our lifestyle.

Maybe even, "foreclose"

[DeSwiss]

3. K&R

+ CHINA

[awoke_in_2003]

4. Ah, you mean they cannot take advantage

of slave labor, too? Opening trade relations with that country was the death knell for American industry.

[cornermouse]

5. Tough.

They send our jobs over to China and then get upset because they're shut out of the market and we're supposed to feel sorry for them and support them? I don't think so.

I hope China nationalizes their companies.

[SocialistLez]

11. Too bad we don't

have that dude from Kentucky, "Tough sh**."

Of course he says that to the workers being fu**ed over by companies rather than the companies themselves.

::sigh::

[notadmblnd]

6. did they really think china would reciprocate and buy US shit?

Neither will the Mexicans, Indians or any other 3rd world country where we've shipped off jobs. Who's gonna feel bad and support the corporate greed monsters now that they destroyed their customer base? Geesh if a simple high school graduate could see this coming 10 years ago, why couldn't all these fancy Harvard MBA's see it?

[pipoman]

10. They could...n/t

[notadmblnd]

14. No they can't. They don't make enough

when you hardly make enough to eat, you don't buy the crap that Americans have taken for granted for decades.

[pipoman]

15. You asked,

"why couldn't all these fancy Harvard MBA's see it?"

and I answered that they could see it. They just didn't care. They made a quick fortune at their little garage sale.

BTW, I agree there are intrinsic problems with manufacturing workers being unable to buy the products they are making.

[notadmblnd]

16. oh, i thought you were speaking about the Chinese buying our crap.

i apologize for the mis-understanding.

[girl gone mad]

7. China outplayed our brilliant business leaders.

And all of the China bashing with regard to the currency peg is simply foolish.

[Canuckistanian]

8. You wanna do business in China? You gotta play by their rules.

If you don't have the right contacts, you don't get to see anybody. YOU make concessions to THEM, unless the whole deal loses money.

Meanwhile, if a Chinese business mogul wants to do business in America, you have to FIRST get the Americans off their knees, begging for a piece of the action.

Other than that, it's easy to do business in China.

[lovuian]

12. Bingo

China was going to take and take
It never intended to give American corporations a foothold to take over their country

They Blew it

[Art_from_Ark]

19. It's not just having the right contacts-- it's also about "greasing palms"

Lots of them-- the mayor, the mayor's relatives, inspectors, etc., all seem to have their hand out when a foreign company wants to move into town. And once the foreign company is set up, it has a whole new set of problems to deal with, including locals helping themselves to services like dedicated phone lines, at the expense of the foreign company. Chinese officials seem to constantly be probing for a foreign company's breaking point-- after the company has set up shop. If a foreign company no longer can stand it and bails after setting up shop, so much the better from the Chinese perspective, because they can help themselves to the technologies and equipment left behind. Win-win for them.

[lunasun]

9. BOO HOO HOO

I feel so sorry for those large multinational companies and their beloved chamber of commerce:nopity:
Surprise!Someone else's turn now.

[amandabeech]

13. China seems to want it both ways.

When it suits their purposes, they play the victimized third world country. And maybe they are.

But when it suits their purpose, they want to throw their weight around like a very major power. And maybe they are.

However, they're not going to win friends with their inconsistent approach.

That business with the Australian oil futures did not make them look business friendly.

The latest pronouncement that companies wanting to sell in China must divulge all IP, know-how and trade secrets to a Chinese partner will not go over well, either.

Shortly after the Chinese announcement, Caterpillar announced that it is bringing some manufacturing back here, citing shipping costs. I wonder how many companies will suddenly find some excuse to begin exiting China that the stockholders will find palatable.

[lib2DaBone]

17. Rotten-egg drywall,... poison pet food....lead paint in toys....

.. when will America stand up and say.. "STOP"!

American workers should be marching on the mall in Washington.. not the Tea Bag idiots....

[rpannier]

18. Dance in a cobra and you got bit!

I'm not surprised

[Hannah Bell]

20. 70% of top chinese exporters = foreign owned, & foreign corps feel "shut out"?

really?

Foreign firms dominate China's exports

BEIJING - Foreign-invested and privately owned enterprises are playing an increasing role in China's imports and exports, which are shifting from light industrial products to high-technology products, according to the latest statistics.

Last week, China published the 2005 list of China's Top 200 Enterprises in Foreign Trade. The list is compiled by two magazines, China Customs, the official publication of the General Administration of Customs, and Business Watch.

A high percentage of the top 200 exporters for 2005 - 148, or 70% - are foreign-invested firms, an increase of nearly half from 2001. Privately owned enterprises took four seats, the first time any
private firms made the list. Thirty-nine are state-owned enterprises, 52 fewer than were listed in 2001. The remaining nine were collectively owned firms.

Among the top 200 importing enterprises, 130 were foreign-funded enterprises, four were private enterprises and 60 were state-owned enterprises, 28 less than were listed in 2001. The remaining six were collectively owned enterprises. (In China, collective ownership is a kind of public ownership.)

http://www.atimes.com/atimes/China_Business/HF30Cb02.html.