US-China trade war not a problem, but Chinese red tape continues to tie up Swedish firms
- Four of the five main external challenges for companies ‘of a legal or regulatory nature’, Swedish Chamber of Commerce in China says in survey
- Half of the 100-plus firms polled say they have experienced no direct impact from trade war
Swedish companies operating in China have escaped largely unscathed from Beijing’s trade war with Washington but remain concerned about weaknesses in China’s legal and regulatory framework, according to a new report.
Problems with import and export regulations, and difficulties obtaining licences and permits, continued to hamper operations, the Swedish Chamber of Commerce in China said on Thursday in its business climate survey, which it conducts every two years.
“Four of the five main external challenges for Swedish firms in China are of a legal or regulatory nature,” according to the report, which was produced in cooperation with Sweden’s embassy in Beijing, its consulate general in Shanghai and investment and trade agency Business Sweden.
When the study was last published, in 2017, the chamber’s members cited discrimination against foreign companies as their main concern.
“[There is] continued concern about their implementation and unchanged limitations of the legal system, such as uneven enforcement, overriding interests and specific laws like cybersecurity,” he said.