It has been long noted that China has been steering away from heavy industrial industry and is shifting into innovative, hi-tech sectors.
"China produced 90% of the world’s mobile phones, 80% of computers and 60% of colour TV sets in 2015" which has helped China to economically grow to where it is today. Critics say its manufacturing is still "low value, energy intensive and highly polluting."
In order to shift from manufacturing to highly innovative sectors, China is giving their domestic companies more lenient regulations over foreign competitors. European businesses are urging China to reform and open the market to foreign companies as there were cases where the foreign competitors found themselves forced to transfer technology in exchange for market access in China.
With the above taken into account, how much more are foreign companies willing to invest in China and will this result in a decline of sending relocating employees to China?
Foreign companies operating in China have long complained about the barriers they face, including limited market access and the ambiguous regulations they have to follow compared with their domestic competitors. State leaders pledge to open up China’s markets, but little is done, they say. Some foreign businesses have complained that they were forced to transfer technology in exchange for market access in China, but still had limited rights to sell their goods on the mainland and their ability to bid for government procurement contracts was also restricted. These were among the main policies which have a direct impact on diminishing the ability of European business to operate in China, the report said.