US Companies Feel Increasingly Unwelcome in China

A growing number of American businesspeople feel unwelcome in China because of what they see as discriminatory government policies and inconsistent legal treatment. The findings come in a survey released Monday by the American Chamber of Commerce in China.

Amcham-China president Michael Barbalas says a survey of 203 members of his organization shows growing pessimism among American businesses operating in China.

"A question that we had asked before is, 'Are companies increasingly unwelcome to participate and compete in the Chinese market?' which we had in this survey, we had 38 percent saying yes. In 2008, when we asked a similar question, only 23 percent [had that response], so we're up 15 percent in just a little over a year and we thought that was pretty significant," he noted.

He attributes the business community's change in attitude to Chinese government regulations requiring something known as "indigenous innovation." The policy discourages companies - both Chinese and foreign - from using or purchasing foreign technology and instead encourages them to use domestically developed technology.

The Chinese government introduced the policy in 2006, and in December, announced a detailed process for applying for indigenous innovation status.