1.Competition Law, Anti-Monopoly law of the PRC (AML) has serious questions remain, such as who has standing to assert claims, what standards is for evaluating damages and what process are in place to handle corresponding private actions and administrative investigation.
2. Environmental Protection, the regulatory environment in many areas has turn into less transparent and expected.
3. Export Controls, Overly-restrictive and sometimes ambiguous export controls have caused material damages to US business. These regulations are actually protectionism which might entail to retaliatory trade measures or possible trade disputes.
4. Real Estate, the Real Estate developers lack the capital to improve the land due in part to the tightened credit policy. Restrictions on Foreign buyer and Foreign Investment in the Real Estate Industry.
5. Transportation and logistics, the latest draft of the postal law which prohibits foreign enterprises from the domestic document delivery business and does not clarify which services should be monopolized by China.
6.Energy,(i) a lack of comprehensive industry-wide quality standards for constituent parts of renewable energy technologies, may impede industry development, the older coal-fired plants are inefficient and highly polluting.(ii) form the long-term national policies to development of renewable energy and clean power, upgrade the older power plant to be friendly with the environment .(iii) the government issue the policy to instruct the people to save energy and encourage to construct clean power plant or upgrade the old plant, however it may take a time cause of expensive cost of high technology but in the long run, China will not be worry to spend the budget to resolve the environmental problem.(iv) encourage the foreign investors to do business on energy .
7.Food and product quality and safety, (i) the food and animal feeds contaminated with melamine and industrial chemical, counterfeit drugs and medical devices cause a serious hazard to consumers, the lack of well-developed third party logistics system and cold chain logistics(ii)Apply the international standards for food and product quality and safety, encourage investment in a logistics network to support food and product safety including cold chain logistic.(iii) The China government trends to adopt the international standard to avoid the banned export and support the investors to enter into logistic business(iv) China should be serious to control the standard of domestic products because the contaminated food and drug can discredit the products of China. And it takes a long time to restore their image.
8. Human Resources, (i) the Labor Contract Law’s statutory is unsuccessful to clarify some important terms for allowed uses of labor such as the “temporary auxiliary”, “substitute positions” and “economic layoff”. (ii) The government will make the Labor Contract Law more clearly in the important terms. (iii) The government considers amending the terms in Labor Contract Law because the government has policy to encourage the investment but this is complicate issue and the government needs the time. (iv) The government should have the long term plan to subsidy the education to upgrade the skill of labor and to reduce the gap of the rich and the poor.
9. Information and Communications Technology, (i) China limits foreign direct investment in telecommunication to 49% for basic services and 50% for the value-added services, the policy of Chinese government is to limit royalties for patented technologies paid to foreign companies. It might hinder technology development. And the violation of intellectual property rights remains serious problem cause of inadequate legal enforcement. (ii) The government would expand the limitation of foreign investment in telecommunication and would not intervene the cost of royalties. (iii)In fact, the government remains the policy to monopoly the telecommunication. It is difficult to change this policy. The second issue, the global practice pressurize the government to lift the limitation of royalty. (iv)The government would adopt transparent market-based policies that do not discriminate between domestic and foreign.
10. Tax, (i) first issue is a 17% VAT exemption is eliminated; its impact is to obstruct the imported high-technology product which the manufacturer need in production. Second, the 10 % dividend withholding taxes which cause of loss of tax incentive .Its affect the investors to reflect on the other location for their investment. Business Tax result in uneven and unfair treatment (ii) Government will provide permanent VAT exemption to their non-resident owners and to repeal the business tax and withholding tax for the foreign investor (iii) The Chinese government might replace Business tax by expansion of VAT and reduce the VAT on imported high-technology (iv) the protectionism is still necessary to maintain the domestic product. It had better to appoint the committee to research this issue for resolving this problem.
Since 2004 to 2009, the investment and economies of scale in China growth continuously. In 2006, white collar and skilled labor salary raise more than 5 times. In 2008, the staff income rates and standard of salary are higher in Mainland China than others Asian country. Moreover, the Chinese government has the policy to enhance the quality of skilled labor .However; the increasing labor costs may hamper China’s economic and social development ambition.
The movement on agricultural and food between 2005 – 2009 has no improvement and is taking a step backwards in transparency and fair implementation of rule. The food safety standard which is considered unfair practice and discrimination, still enforce against the foreign products such as its zero pathogen tolerance for common pathogen detection in raw meat and poultry on the other hand, Evidence show that the zero tolerance pathogen standard is non-existent. Moreover, we can observe that in May 2007, the US cattle population received a controlled risk status by OIE; China is the last state in Asia to sustain an absolute ban on US beef imports
A few years ago, the financial service of China was lack of transparency such as the appointment of a branch manager. Ambiguous wording in the existing regulation, however in 2009, the financial service is obviously advanced in the transparency and fairness .China continue financial liberalization which stimulate the financial institutions to compete and create the new product and service. Furthermore, the Small Lending Companies not only support the credit to SMEs but also commence to address the extensive problem of “gray-market “lending by unauthorized companies or person. And the government attempt to improve a national credit information system.
Intellectual property rights protection is positive improvement continuously in 2005-2009,
China emphasizes to solve the infringement of intellectual property more than ever before. We can observe form the outcome such as [1]in the first half of 2008, the State Intellectual Property Organization obtained 345,569 patent applications. It was increased twice from 2005, which had 173,327 invention patents.[2]From the beginning of 2008 to May 27,2008,there were 190,000 trademark examinations, an increase of 76.1 % over the same period a year earlier.
In conclusion, the overall business environment can satisfy the investors but the some resolutions of major problems are unsatisfied such as the transparency and so on. However, China attempts to enhance the transparency of bureaucratic and to render the fairness of competition. The Chinese have the strong power to consume the domestic and foreign product. Hence, China still remains attractive for the foreigner investors.
