A survey of Japanese companies operating in China found deep levels of dissatisfaction at the progress made since China joined the World Trade Organisation. The survey, conducted by the Chinese branch of the Japan Chamber of Commerce and Industry, found rampant levels of counterfeiting and vague approval criteria for investment plans.
Producers of automobiles and motorcycles complained about being limited to just two joint ventures in China. Pharmaceutical makers said that, after filing applications for new drug production with local authorities, their product data was leaked to Chinese firms. Electric equipment makers have suffered from slow screening of foreign patent applications by Chinese authorities. Retailers and wholesalers cited too many regulations, including a rule that foreign companies can receive royalties of just 0.3 per cent on chain stores opened in China.
However, 45 per cent of companies that responded said they posted a profit in 2001, while 28 per cent broke even and 27 per cent made an operating loss.