No More Getting Around the WTO Regulations

SCMP: Is China making life difficult for foreign companies?

“Challenging”, “hesitant” and “doubtful” are the kind of words European and American companies in China are using to describe their environment.

Concerns over the business climate are mounting, and range from rising protectionism and slow progress in market access to forced technology transfers and tightening internet censorship.

“For foreign companies in China, right now is perhaps the most distressing and unhappy time that I have seen. They are afraid of filing trade actions, or talking publicly about their problems as they fear that retribution would be very strong,” said James McGregor, a business executive who lived in China for more than two decades.

A massive conflict is building on trade and when it is addressed, it will spill into other areas such as national security and the global financial system. The optimistic scenario is not trade deals, but also new security arrangements and a new global currency or central bank. Meanwhile, the leaders of many Western governments are losing popular support and might even collapse if they push through an unpopular deal.