US firms worried by Chinese regulation, protectionism

Concerns about overly tough regulation and protectionist industrial policies were flagged by US companies in an annual white paper published by the American Chamber of Commerce in China, Bloomberg reported. "While most members continue to be optimistic about China’s market potential, many have begun questioning the long- term viability in China as they consider the obstacles presented by an increasingly difficult regulatory environment," the report said. Although the group expects an increase in trade tensions between China and the US, almost four in five member companies plan to boost investment in China this year. Fifty-one percent of respondents expect their growth to exceed 10%. The report said the US places too much emphasis on the issue of renminbi revaluation. It argues that US government efforts would be better spent on pressing China to better enforce laws protecting intellectual property, change rules that restrict foreign ownership and reduce tariffs.