In the 10 years since the establishment of the European Union Chamber of Commerce in China, I have seldom seen market sentiment among members so bleak or pessimistic. After 30 years of progressive market reforms, many foreign businesses in the country feel as though they have run up against an unexpected and impregnable blockade.
For more than 30 years, foreign companies have been welcomed into China. They have brought massive levels of investment andtechnical and management skills, building supply chains that benefit not only their own businesses but those of competitors, while also providing consumers with more choice. Their contributions continue to be an important driver of China's economic success.
Suddenly political developments and regulatory restrictions have converged to create a dangerous cocktail that, for many companies, smacks of protectionism. While in some sectors – financial services and retail, for example – the doors to the Chinese market open ever wider, in many industries frustration among foreign businesses is far higher than Beijing realises.