Amcham Survey Highlights Issues for US Business in China
The American Chamber of Commerce in China's 2002 white paper identifies greater transparency in the legislative process and regulatory environment, and better law enforcement, as top issues of concern for US businesses in China. The paper, presented to both the US and PRC governments, also contains proposals for market access by sector.
Around 170 American businesses responded to this year's survey. The results reportedly show that US firms are worried about China's implementation of its World Trade Organization (WTO) commitments: Thirty-five percent are "very concerned" that China will not meet its commitments or that protectionism could increase and 25 percent report that their business plans for the next five years are closely tied to China's WTO implementation schedule. Nevertheless, US firms remain optimistic about China: more than 80 percent expect demand to grow in China and nearly 90 percent plan to expand.
Private Sector Grows
China's private sector, with 1.76 million registered enterprises, now accounts for one-third of China's GDP and employs more than 20 million people, according to press reports. In the first quarter of 2002, the private sector created nearly a third of all new jobs. In comparison, the state-owned sector accounts for 37 percent of GDP, while the remaining 30 percent comes from agriculture, collectives, and foreign-invested enterprises.
NBS Reports on China's Wholesale and Retail Markets
The National Bureau of Statistics (NBS) reported in March that growth in China's wholesale and retail markets was slower in 2001 than in 2000. In the wholesale market, sales of stationery, hardware and electrical equipment, communications equipment, and automobiles grew rapidly, while sales of cosmetics, jewelry, and cotton and hemp products fell sharply. In the retail market, sales of communications products, construction and decorating materials, and oil products surged, while those of electronic publications and audio visual products dropped.
China Publication Group Established
The China Publication Group, which consists of 12 major publishing, printing, and distribution companies, launched operations on April 9. The group has 5,000 employees and 5 billion RMB ($604 million) in assets. The total sales revenue of its subsidiaries in 2001 reached 2.5 billion RMB ($302 million).
China Business Review, Volume 29, Number 4, July-August 2002
