Latest News:  
Beijing   Overcast    27 / 20 ℃  City Forecast

English>>China Business

Easy times gone for foreign firms in China

By Liu Zhiqin (Global Times)

16:44, September 27, 2012

Time recently published a cover story titled "The New Great Wall of China."

The article argues that an increasingly strict bureaucratic approval system and more regulations and restrains concerning foreign investment have formed a new Great Wall, a symbol of China's "technical prowess, monumental resources and, most of all, its attitude toward the outside world."

According to the article, this new Great Wall seems to hinder the process of China's drawing foreign investment, making many foreign investors lose patience and confidence. The dilemma they face is either leaving or staying in China.

The article concluded that China's reform process has remained stagnant or even fallen back.

These complaints and opinions are nothing new. Since the 2008 Beijing Olympic Games, such opinions have been heard constantly.

Foreign companies have encountered more difficulties operating in China, which is an indisputable fact. But this is because the Chinese market has become more mature compared to two decades ago.

It is normal that China's investment environment and policies as well as its preferences in investors have changed a great deal.

The opening-up of the Chinese market has experienced three stages. When it had just started, a variety of foreign companies swarmed in, no matter their quality they had.

After a decade's development, the Chinese market has learned to distinguish good companies from bad ones. Now the market has taken the initiative to innovate.

In the first 10 years, China was really poor. It believed that whatever was foreign was good, so that foreign companies could easily enter the Chinese market, including some projects that required low or even no technology.

A German entrepreneur once talked with me about his impression of China 20 years ago.

Then China lacked the experience of international trade, so it had to follow the requirements of foreign companies blindly.

China's labor and raw materials were also very cheap at the time, and foreign companies could easily make money. But everything has changed. It is normal that foreign investors find it hard to adapt to the new environment.

【1】 【2】 【3】 【4】


News we recommend:
Toll fee exemption boosts auto rentals GDP may slow for 9th quarter China-ASEAN Expo increases trade volume
Chinese firms ramp up presence in Thailand Chinese go online to buy latest iPhone Chinese winemakers demand anti-dumping
Logistics co-op needed in China, ASEAN  Global yuan use increases Steel producers face bleak months ahead

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Amazing military photos: China's J-10 fighters

  2. Aircraft carriers in service around the world

  3. New Deal to Boost Consumption

  4. Starbucks in Lingyin Temple triggers criticism

  5. Liu Xiang comes back

  6. Pictures of space capsule

Most Popular

Opinions

  1. Noda gov't in hot water as LDP eyes comeback
  2. White paper makes watertight case for Diaoyu claim
  3. Intl firms should learn from Chinese counterparts
  4. Aircraft carrier brings timely morale boost
  5. Palestine faces difficulties amid Arab upheaval
  6. Theft of Diaoyu Islands risks China-Japan trade ties
  7. Japan defies post-war int'l order, China's goodwill
  8. Tokyo's stance on Diaoyu Islands 'unacceptable'
  9. Supervision shields officials from graft
  10. Microsoft wisely teams with Beijing to fight piracy

What's happening in China

Unknown object found in Uni-President milk tea

  1. Officials post their financial information online
  2. Views divided on bid to revise pension system
  3. New high-speed railway spurs debate over prices
  4. Chinese gov't units test-drive green autos
  5. Five detained after fatal Gansu mine accident

China Features

  1. Ancient villages face losing their souls
  2. Economic circles key to Sino-Japan relations
  3. How to pan for gold in cultural investment fever
  4. How are elegant Miss Etiquettes 'produced'?
  5. Co-production helps Chinese films go global

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture