China’s Regulations A Big Hurdle For US Firms

China’s Regulations A Big Hurdle For US Firms


Asia Bizz: As a number of US firms are based in China, reports state that they are experiencing a big hurdle and the reason being the country’s regulations. The intellectual property rights in China for foreign companies is the biggest issue, as the number of multinational companies are increasing in the nation regularly. As per a survey, China successfully tapped around $105 billion worth of foreign investments in its market, as many countries are coming forward to invest in its growing economy.

The investments accounted is 17% higher than what was recorded last year, which also indicates that China has become a land of great success for foreign markets. There is an increase in American investment and companies , but they have quoted the regulatory system of the country is a massive hurdle.

The most important issue today in China is the rise of protectionism within the nation, and the fear that the companies will not have enough enforcement to their intellectual property rights. If this tends to continue, then US companies will lose billions of dollars each year to the IPR enforcement system.

Source: Reuters