MORE United States' companies are seeking advice on getting around operating restrictions in China, according to an expert with a leading Hong Kong-based consulting firm.
However, many more US firms needed advice on China's foreign exchange regime, George Baeder, managing director of Pacific Rim Consulting Group (PacRim), said.
Many US companies in China took risks because they were not fully informed about changes made to the forex market in January this year, he said.
With foreign currency shortages predicted until 2004 in China and convertibility of yuan a distant goal, it was in a firm's best interest to seek professional advice, Mr Baeder said.
'Absence of a well-constructed approach to forex balancing is a risk to the survival of many US firms. The State Administration for Exchange Controls (SAEC) is tightening control over allocation of foreign exchange,' he said.
Since changes to the forex system in January, new and old US enterprises operating in China had to get foreign exchange registration certificates from SAEC to open forex accounts.
Certificates also allowed US companies operating under the old system to keep existing accounts open.
