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Swedish companies discriminated against in China – how painful!Wednesday, 08 February 2012
Swedish companies in China are seeing evidence of discriminatory regulations. The Chinese government has set up a competitive disadvantage to foreign companies, according to the Swedish Embassy in Beijing reports Swedish business daily, Dagens Industri.
The pace of liberalization in China, which lasted until 2006, has slowed. Instead, systems are now being created to benefit Chinese firms and to favour their own industries, write the paper.
It is strange that western companies never at any time expected that such will be the situation. In fact, if this is true, then it is nice that such indication come out so quickly so that western firms can start readjusting.
Thanks that the Chinese have not yet collect all the key technology they have set themselves out to collect and western companies just lack strategy such that they have been sheepishly dream walking to a China just because there they have cheap labour and resources.
China will never remain the same and as they grow they would love to also make their environment nicer therefore, all the dumping – lack – of – strategy western companies will be forced to suffer. We can also recall that such was said about Japan a few years ago.
On the whole, Swedish companies in China are profitable and are growing, according to a survey of 166 Swedish companies established in China. But they testify to inefficient import and export procedures, and a discriminatory and unpredictable regulatory environment. The issuing of government contacts were also reported as a disadvantage.
"There are a number of obstacles in China that makes foreign companies not to be able to compete on equal terms with Chinese companies, "says James Kiefer, Ministers and Head of the Economic Section of the Swedish Embassy in Beijing, to Dagens Industri.
"Given the demands that are made, it is surprising how well the Swedish companies still succeed in China, "he continues.
For us here in Scancomark, we see nothing wrong with the Chinese behaviours because such is seen in most countries even in Sweden though here more at the micro level. We have heavy discrimination in Sweden, say gaining contracts for example advertising on a network like our. Also why do the western countries think that China, a communist country will leave its doors open for western companies to come in and play at equal terms.
Western countries should seat up and show that they are what they claim to be – leaders in the free world by also consolidating their own economies and markets or just be market leaders so that China can follow.
By Scancomark.se Team
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