BEIJING (AP) 鈥 Foreign companies in China are uncertain about what they are allowed to do following police raids on consulting firms and want 鈥済reater clarity鈥 about how newly expanded national security and other rules will be enforced, a foreign business group said Tuesday.
The British Chamber of Commerce in China said a survey of its members found they are more optimistic following December's lifting of anti-virus controls that blocked most travel into and out of China. It said they want to invest but are waiting for steps to 鈥渞estore the trust and certainty鈥 in China amid tension with Europe and Washington and official plans to promote economic self-reliance.
鈥淚f there is greater clarity and greater certainty, then we believe that companies will commit more to China,鈥 said the chamber chairman, Julian MacCormac, at a news conference. Some 70% of companies 鈥渁re really waiting to see鈥 how conditions develop before taking action.
President Xi Jinping's government says foreign companies are welcome and is trying to encourage them to invest more. But they are uneasy following the expansion of national security and other rules with little explanation and official plans to create competitors to global suppliers of processor chips and other technology, sometimes using subsidies and market barriers that have strained relations with the European Union, Washington and other trading partners.
On Sunday, the government banned use of products from the biggest U.S. maker of memory chips, Micron Technology Inc., in computers that handle sensitive information. It said Micron had unspecified security flaws but gave no explanation.
Companies are on edge after police raided offices of two consultancies, Bain & Co. and Capvision, and a due diligence firm, Mintz Group. Authorities have given no explanation. They say companies are obliged to obey the law but have given no indication of possible violations.
The British chamber represents some 650 companies, many of them in finance, consulting and other service industries that might be affected by tighter curbs on what information can be gathered in China and how it can be used and stored.
Tuesday's report included 171 suggestions for Chinese regulators including 鈥済reater clarity鈥 about data restrictions on the auto industry and addressing what it said is unfair treatment of foreign companies in government purchasing.
The chamber鈥檚 director of government relations, Sally Xu, said member companies that responded to a request for questions ahead of a meeting next week with a Ministry of Commerce official all asked about the investigations of consultants.
鈥淥ur companies are concerned about this,鈥 Xu said. 鈥淭hey wonder, where is the line between what we can do and cannot do?鈥
A survey in April found 76% of companies that responded are more optimistic following the end of anti-virus controls that blocked most travel into and out of China, according to the chamber. But its report said the outlook is clouded by an unpredictable business environment, political tension and 鈥渋ncreased talk of self-sufficiency.鈥
鈥淭his language around security and self-reliance needs to be balanced against the message of 鈥榳elcome to come to China,鈥 because I think there is some nervousness,鈥 McCormac said. 鈥淚t raises uncertainty about, what鈥檚 the future like for me as a company in China?鈥
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British Chamber of Commerce in China: www.britishchamber.cn
