Xin’s Point: 'Made in China 2025' – a revenue opportunity for US companies?

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03:02

President Trump has been criticizing China for forcing US companies to transfer technology as the price to participate in the Chinese market, among other things. But what do US companies operating in China think? The just-released China Business Report 2018 paints a different picture than that outlined by the president.

The report was based on results of AmCham Shanghai’s annual China Business Climate survey, one of the longest-running surveys of US businesses in China.

Between April 10 and May 10, the survey asked 434 member companies for their views on business performance, investment, challenges and policy environment in China.

What did the survey find out?

On business performance, profitability remains strong, standing at 77 percent. And 6 percent more companies say 2017 was “very profitable” in comparison to 2016. Operating margins have also been growing since 2014.

45 percent of companies are optimistic about the next five years, 6 percent more than last year. More companies plan to keep or increase their investment levels in China.

One-third of respondents believe that in recent years, Chinese government policies toward foreign companies have improved. That’s 5 percent more respondents than last year.

Now here comes a slap in the face for the centerpiece of President Trump’s complaint. When asked whether they are pressured to transfer technology, while 20 percent of respondents said yes, 45 percent said no.

A significant proportion of American firms say they do not feel pressure to transfer technology to China. /Picture Provided by CGTN's The Point with Liu Xin.

So it’s very clear, twice the number of US companies operating in China say they are not forced to transfer technology than those who feel so.

So where did President Trump’s assertion come from? When the US Trade Representative's office did its Section 301 investigation, did it ever ask American businesses in China who know the situation better?

Finally, how do companies view Made in China 2025, the initiative President Trump has repeatedly targeted as giving China and Chinese companies unfair advantages?

Although 29 percent of respondents see it as a market access barrier to foreign manufacturers, 48 percent, or almost half, see it as a revenue opportunity. Another slap in the face for the Trump theory.

Judging from this report, it seems the US administration has been putting words into the mouths of their businesses. Although there are some complaints about doing business in China, members of the AmCham are divided and in many aspects more positive than negative.

Let these companies speak for themselves. Let facts and numbers tell the real story.