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China's business climate is making it more difficult for United States firms to do business in the country, according to a survey released on Tuesday. The 2011 China Business Climate Survey by the American Chamber of Commerce indicates that more U.S. firms are grappling with red-tape when dealing with Chinese authorities.
Nearly a third of the companies surveyed say bureaucracy is the biggest challenge. Less than a quarter of the firms last year thought this was a problem.
The Chamber says 71% of companies think the Chinese licensing process discriminates against foreign firms. More than 40% think a new business license is the most difficult to get. This is frustrating those who are hoping to expand their operations into China.
Since the Chinese regime entered the World Trade Organization in 2001, it has pledged to open up its economy. But in Beijing on Tuesday, Chamber Chairman Ted Dean says a fair and transparent regulatory environment is yet to be achieved.
Intellectual property protection remains a major concern. Of the firms surveyed, 70% say the Chinese regime's enforcement of IP rights is either ineffective or totally ineffective.
Even as U.S. firms continue to make profits in China, nearly a quarter think the Chinese regime's economic reform has failed to improve the business climate for them. This is a significant increase from last year when only 9% thought they didn't benefit from the reforms.
The Chamber survey was based on roughly 430 responses out of a total of about 1,100 companies.