How hard is it for American and European companies to do business in China?

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Contrary to certain narratives and geopolitical tensions also fueled by the media but also due to objective difficulties, actually the business ecosystem in China has improved over time and is far more favorable than other countries in the world with the same level of development.

The crucial point of many misunderstandings between China and the West is precisely this: should we assess the degree of access to the Chinese market by comparing it to the degree of access that we in the West allow to them, therefore a concept of absolute reciprocity? Or, we have to compare the degree of access to the Chinese market with that of other countries with equal GDP/ Capita, or even comparing it to the degree of access that we ourselves in the West offered to foreign companies when our GDP/ Capita was around $ 10,000, then use a concept of relative reciprocity, relative to GDP/capita

A theme that I have always tried to highlight in an attempt to bridge the cultural distance and foster mutual understanding that the Bruegel Institute faces today, given at the hands of the World Bank Doing Business and WEF Global Competitiveness Report

INSIGHT AND SOURCES

  • How difficult is China’s business environment for European and American companies? – www.bruegel.org

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