U.S. Chamber Says China’s Focus on Local Industry is Hurting American Businesses

A new report from the U.S. Chamber of Commerce in China expresses concern with Chinese business practices that favor domestic companies:

In its annual report on the U.S. business climate, the American Chamber of Commerce in China said a collection of rules, standards and other requirements under China’s “indigenous innovation” policy were starting to hamper the ability of outside technology firms to operate.

As the nation has intensified government protection of and support for designated industries, the policies have raised doubts “about the depth of commitment of China’s leadership to reform, of completing the transition” to more open markets, said chamber President Christian Murck.

U.S. business and political leaders have repeatedly criticized China’s new push to advance its local technology companies, citing the importance of giving American firms freer access to China’s vast market. China has become a top destination for U.S. exports, and success there is a central aim of major corporations.

There is a growing acknowledgment, however, that the economic access that has boosted China’s growth over the past 20 years — and opened the country to companies such as Wal-Mart and General Motors — has entered a new and, for the United States, more complicated phase.

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