Are US companies really less welcome in China?

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A new report claims American businesses feel less welcome in China these days but one analyst says they had better adapt to a new reality – greater domestic competition.

The report by the American Chamber of Commerce in China on Tuesday says its members are generally being treated unfairly compared to domestic counterparts, leading to slower investment growth.

The report showed that 75 percent of companies surveyed felt less welcome.

But current affairs commentator, Einar Tangen, said that was not unusual.

Foreign companies are competing against Chinese firms, which are their biggest competitors.

In the past, foreign companies were particularly respected when they came to China to do business, because they brought new skills and technologies.

However, China has grown rapidly, Tangen said. Local companies had made great progress and started to dominate the Chinese market. In contrast, foreign companies felt worse off than before.

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Analysts say they expect the major trade imbalances between the US and China will continue. Most of the survey respondents calling for fairer treatment in China’s market, thought China was trying to give an advantage to Chinese tech firms. Tangen sees a tit-for-tat situtation right now.

“Chinese firms who are trying to buy assets in the United States are being denied for security reasons, which is ironically the same reason that China said they will keep other tech companies out of China,” he said.

Nevertheless, the report said half of respondents are confident China will open its doors wider to foreign capital in next three years.

Tangen indicated not only America play the role in China’s foreign business market, but also Africa, South America and Europe. "So we have to be careful with equating what the American Chamber of Commerce comes out with and trying to project that on to the others," he said.