World Trade Organization: U.S. Companies' Views on China's Implementation of Its Commitments Page: 24 of 61
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Impact from China's Reforms
Expected to ContinueResponses regarding the impact of China's WTO implementation on their
companies varied when analyzed by company size and industry. First, when
analyzed by company size, a majority of representatives of small- and
medium-sized enterprises reported little, no, or a negative impact from
WTO implementation. Large company representatives responded more
positively, with nearly three quarters selecting either "very positive" or
"generally positive" when asked what impact China's WTO implementation
had on their company's ability to do business in China. Second, a majority
of respondents in three of the four industries reported a positive impact on
company operations. Specifically, most of the representatives of
agricultural companies reported little, no, or a negative impact from
China's implementation efforts. Agriculture respondents discussed
negative consequences resulting from WTO-inspired testing requirements
that ultimately resulted in the rejection of U.S. shipments to China. In
contrast to agriculture, almost all of the banking industry respondents
reported either a very positive or generally positive impact on their
companies' ability to do business in China. One representative from a
banking company stated that his company has a positive view of market
development in China-the rules seem much clearer for banks and there is
an increased sense of assurance that the company can be successful as a
result of China's WTO implementation. A majority of the manufacturing
and pharmaceutical company respondents also reported more positive
than negative responses regarding the impact of China's WTO
implementation on their companies.
A number of company representatives reported a positive outlook for their
future in China when asked about the likely impact that China's WTO
implementation would have in 2 years' time, but they also noted the
challenges they expect to continue. Some respondents said they expected
the overall business environment in China would improve significantly.
Others specifically discussed WTO commitments that would have an
impact on their ability to do business in China. For example, some
respondents stated that additional tariff cuts would reduce product costs
and result in increased profits. However, other respondents discussed
obstacles hindering reform efforts. One company representative noted that
China's regulatory reforms may be fine on paper, but speculated that actual
implementation could invalidate the intent of the reforms. Some company
representatives noted that different interpretations of laws and regulations
as well as varied approaches to implementation between provinces and
levels of government create challenges for foreign companies in China.
Several company representatives discussed ongoing delays to business
operations resulting from Chinese requirements for product registrationGAO-04-508 China Business Views
Page 19
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United States. General Accounting Office. World Trade Organization: U.S. Companies' Views on China's Implementation of Its Commitments, report, March 24, 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc298401/m1/24/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.