American businesses in China are unsure about further investment in the country because of increasing regulatory uncertainties, pessimism over market access and growth concerns, reports Bloomberg. The results come from a recent survey by the American Chamber of Commerce with around 40% of the 353 respondents viewing the regulatory environment as one of the driving factors of pessimism over doing business in China.
This was up 16% from a year earlier, according to a report released Tuesday. More than a third said they will lower investment due to policy uncertainties. “China’s regulatory and policy environment remains an obstacle to performance and creates uncertainty about investment decisions,” the report said.
Beijing’s sweeping regulatory crackdown on sectors from education to internet platforms triggered a sharp sell-off in Chinese stocks in 2021, although the campaign has taken a breather since late last year as growth concerns have mounted.