US firms moving operations out of China: Survey

[yuiyoshida]

One out of four US companies active in China has moved some operations out of the country or is planning to, as conditions worsen in the world's second-largest economy, an American business group said Wednesday.

Foreign investment has been a key part of China's transformation in recent decades, which has seen it become the workshop of the world and its largest trader in goods, but growth is now slowing.

It faces rising competition from rivals in Asia and elsewhere on labour costs, while the American Chamber of Commerce in China said more than three-quarters of respondents to its annual business climate survey - 77 per cent - said they felt "less welcome" in the country last year.

It was a significant jump on the 47 per cent in 2014, and came in the wake of wide-ranging monopoly probes that have targeted foreign firms, some of which have paid huge penalties to Chinese authorities.

http://business.asiaone.com/news/us-firms-moving-operations-out-china-survey

[guillaumeb]

1. A race to the bottom for workers. Recommended

"Some of the policies which are being considered or have already been enacted are fundamentally leading China in the wrong direction," said Lester Ross, the chamber's vice chairman. Among the 25 per cent who have moved some of their capacity elsewhere in the last three years, or are planning to do so, the most common driver was rising labour costs. But the chamber said almost one in 10 said they were doing so because of "regulatory challenges". - See more at: http://business.asiaone.com/news/us-firms-moving-operations-out-china-survey#sthash.wSqZLr79.dpuf

We would not want businesses to have to pay living wages or be regulated in any way.