CHINA should slash red tape and clarify its rules or risk losing foreign investment to other emerging markets, Price Waterhouse's new China chief executive says. Donald Menovich said Western companies found doing business in China frustrating because of red tape, confusing administration and unclear rules. He said a further problem was that many foreign companies would prefer to have full control over ventures in China but were forced to take a mainland partner in most industries. Another source of frustration was the complexity and difficulty in carrying out new investment. The frustrations prompted some companies to abandon China and seek investment opportunities in other markets, Mr Menovich said. He said foreign companies were going to compare the four biggest emerging markets - China, India, Russia and Latin America - as they were unlikely to invest in all areas where opportunities existed. 'Some large multinational companies, which are very enthusiastic about China, are not going to walk away from China,' he said. 'But they may decide to go more slowly because of the difficulties of making investments in China and to look to other markets which are more open and conducive to the types of returns that the companies are seeking. 'I think if you look back on the euphoria and excitement relative to the China market back in 1992 to 1993, I think that excitement has been tempered. 'But China will still be the largest market in the world in a few years' time and certainly in the next decade. 'Any companies which believe they are global players cannot afford to stay away from China and we will continue to see substantial investment in China.' Mr Menovich said the China market would continue to mature and grow, presenting many opportunities for international companies. He said that inconsistency and lack of clarity in the implementation of rules and procedures would undermine confidence in the business community.