As the Chinese market matures, foreign companies in China can fill a vital role in supporting the development of domestic consumption, services and innovation, according to the 2013 State of American Business in China White Paper released by the American Chamber of Commerce in the People's Republic of China (AmCham China).
"In the next stage of China's economic expansion, it is clear that low-cost labor and exports can no longer be the primary drivers of growth. Moreover, in order to develop beyond middle-income status, China must find new ways to boost productivity," said AmCham China chairman Greg Gilligan.
"Our member companies can make valuable contributions to the Chinese economy through their managerial and technological expertise," he said."However, present regulations limit the ability of foreign firms to invest and fully compete in a number of key industrial sectors. By reforming its business policies to align more closely with those of mature developed markets, China would level the playing field for private and state-backed companies and promote competition that would benefit both Chinese companies and consumers over the long term."
"China's new leadership has taken office amid a growing consensus about the urgency for economic reforms," said chamber president Christian Murck."We are encouraged that they have endorsed a reduction in the number of required government approvals, internationalisation of the RMB, inclusive urbanisation as a driver of growth, and continuation of the reform and opening process. We look forward to meeting with agency officials to discuss operating conditions across different industries in more detail."