Competition with Chinese Firms Tops Challenges for American Companies in China - China Briefing News

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17/12/20, 9)42 pmCompetition with Chinese Firms Tops Challenges for American Companies in China - China Briefing NewsPage 1 of 4About us ()Topics ()Bookstore ()Events ()Partners ()INTERNATIONAL DESKS ()Contact ()!() "() #()$()%October 2, 2014Posted byChina Briefing ()Reading Time:7 minutesCompetition with Chinese Firms Tops Challenges for American Companies iChinaBy Ellen Huber and Erin Ennis, China Business Review ()When nearly one year ago a US business executive received word that his company was flatly denied membership to one of China’s biggest industryspecifications and standards associations, he was left with many troubling questions. Were other companies turned down also? Was his company beingsingled out? But what troubled him most was the reported reason his industry-leading company was rejected: foreign companies were not permitted tojoin.Since then, the executive says his company—a US-China Business Council (USCBC) member—has lobbied many times for reconsideration, but itsapplication continues to be denied.As a result, he says that competition with Chinese firms is proving to be the greatest challenge his firm is facing in the China. And he isn’t alone: After asteady ascent in the rankings, competition with Chinese firms is now the top challenge for American companies doing business in China. According to theUSCBC 2014 member survey (), US businesses say that they are facingincreasing numbers of Chinese competitors who often enjoy preferential treatment over foreign firms.This is echoed by the US executive. He says that it is unequal treatment in government regulations,not competitive Chinese goods and services, that makes this challenge so difficult to tackle. He saysthat Chinese companies striving for international recognition—and the central government—aredriving these kinds of policies. “In my opinion, China wants nothing more than to have a brand similarto Lexus or Nikon,” he said. “And it’s going to be difficult with that sort of approach.”The top challengeAs China’s economy has grown in size and strength, so have its domestic companies—both privateand state-owned enterprises (SOEs). The competition American businesses face from theiradvantaged Chinese counterparts has grown stronger—and more pressing due to the recent slowing

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