Cybersecurity law causing ‘mass concerns’ among foreign firms in China
New rules have added to costs and had a big impact on how they do business, survey finds, and tax regime and land acquisition policy are also headaches
Beijing’s cybersecurity regulations are a big source of concern for foreign businesses in China, a survey by the American Chamber of Commerce in South China has found.
Most of the 215 foreign firms polled said the country’s tax regime, land acquisition policy and cybersecurity law were all headaches, according to a white paper and report on the business environment in China released on Thursday.
But of the three areas, it is the new cybersecurity law introduced in June that is causing “mass concerns” among foreign firms because it has greatly increased operating costs and has had a big impact on how business is done in China, said Harley Seyedin, president of AmCham South China.
“It created uncertainties within the investment community and it’s resulting in, at the minimum, postponement of some R&D investment,” Seyedin said.
“The law requires approval ... to be obtained for cybersecurity, but it does not tell you where to apply, how long it takes you to apply, how long it takes for the results to come out, and what the process might be in case you want to appeal the decision,” he said. “All of these are vague but it’s going to result in ... fear.”
