US companies are wary about investing in China because of policy unpredictability, a business group said, as Beijing struggles to attract foreign funds to boost its economy.
“The inconsistency in policy over time and the discrepancy between stated policies and their implementation has led to a cautious approach among investors,” the American Chamber of Commerce (AmCham) in China said in an annual report released yesterday.
Beijing has released several measures over the past year, including a 24-point action plan to boost overseas investment.
Photo: AP
However, foreign CEOs have complained China has not followed through on promises to help foreign businesses.
“So far we’ve seen limited implementation of the 24 points,” Sean Stein, chair of AmCham China and former US consul general in Shanghai, told a press briefing.
“We’re at a stage now, where promises of policies don’t move markets and they don’t lead to investment,” he added. “Action leads to investment.”
New data last week showed foreign investment in China slowed for a third straight month last month compared with a year earlier, highlighting the difficulty the nation has had convincing overseas companies to invest since it reopened from three years of COVID-19 isolation.
Foreign companies have largely held back, citing geopolitical tensions and the country’s uncertain growth outlook.
There has also been concern about the complicated environment facing advisory firms in the world’s second-biggest economy.
AmCham China’s Policy Committee chair Lester Ross said firms have found it increasingly difficult to gather information crucial to operating in the country, “because there has been suppression of companies whose business is to understand the business environment.”
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