China’s Business Environment: Is it Enough to Deter Investors?

US Treasury Secretary Janet Yellen urged China to deviate from its state-driven economic policy, citing the deterrence it creates for investors. Speaking at the US-China Business Council’s 50-anniversary dinner in Washington, Yellen highlighted the stifling effect of an overbearing role for state-owned enterprises.

US businesses have repeatedly voiced their concerns about the perceived unfair Chinese business environment, including limited intellectual property protection and bias towards domestic companies. This year, apprehensions escalated due to a clampdown on US consulting firms operating in China, prompting Washington to advocate for a predictable business landscape and equal competition.

Referencing a recent survey by the US-China Business Council, Yellen pointed out that firms are reassessing their investment strategies – a development that should worry Beijing. The…