DATE=3/14/2000
TYPE=CORRESPONDENT REPORT
TITLE=U-S - CHINA TRADE (L ONLY)
NUMBER=2-260157
BYLINE=STEPHANIE MANN
DATELINE=BEIJING
INTERNET=YES
CONTENT=
VOICED AT:


INTRO:  American companies doing business in China say 
many of the country's laws and regulations treat them 
unfairly.  And, the American Chamber of Commerce in 
Beijing has issued a long list of suggestions on ways 
to improve the business climate in China, as V-O-A 
correspondent Stephanie Mann reports. 

TEXT:  The American Chamber of Commerce is submitting 
its recommendations in a white paper to the Chinese 
government.  The report says -- although U-S direct 
investment in China is increasing -- American 
companies continue to complain about China's laws and 
regulations governing business. 

The report -- based on a survey of 130 American 
companies operating in China -- says U-S businesses 
find China's legal system unpredictable, undependable 
and confusing. 

The chairman of the American Chamber of Commerce in 
Beijing, Tim Stratford, says the Chinese Government 
seems open to receiving the recommendations because it 
wants to improve the business environment.  Mr. 
Stratford says Chamber of Commerce members will meet 
with Chinese officials to discuss the suggestions 
mentioned in the report. 

            // STRATFORD ACTUALITY //

We've talked about things like greater transparency -- 
the opportunity to be aware of laws or regulations 
that are being considered and the opportunity to 
comment on them beforehand.  We've talked about trying 
to open up market access, removing some of the trade 
barriers and some of the investment barriers. 

            // END ACTUALITY // 

// OPT // The Chamber of Commerce also recommends 
foreign companies operating in China be allowed to 
import and export directly, without having to conduct 
transactions through an intermediary Chinese company.  
Other recommendations call for better enforcement of 
existing laws that protect intellectual property 
rights.  // END OPT //

Mr. Stratford -- an executive with the General Motors 
Corporation in China -- says many problems raised by 
the Chamber of Commerce study have been addressed in 
the new U-S / China bilateral trade agreement. 

That agreement helps pave the way for China's expected 
accession into the World Trade Organization.  American 
business executives in Beijing say China's membership 
in the W-T-O will provide an international structure 
to regularize some of the practices that are now 
unfair or unclear.  

Mr. Stratford says he expects to see great progress in 
the problem areas over the next few years as China 
works to meet W-T-O requirements. 

            // REST OPTIONAL //

Mr. Stratford points to one area where cooperation 
between foreign businesses and the Chinese government 
has paid off.  He says he is encouraged by the way 
China handled corporate concerns over new rules 
governing encryption technology, which protects 
electronic communications from eavesdropping.  

The new rules were issued in October and were to go 
into effect in January.  They would have required 
anyone using products with such technology to register 
with the government and foreign encryption technology 
would have been banned from sale in China.  That would 
have blocked the sale of foreign-made mobile phones 
and much internet-related software, and would have 
barred Microsoft from launching its new Windows 2000 
software in China.  

Mr. Stratford says U-S companies were disappointed 
that they had no opportunity to comment before the 
regulations were issued.  However, he says, after U-S 
and other foreign companies expressed their concerns 
to authorities, the Chinese Government issued a 
clarification last week relaxing those rules.

            // SRATFORD ACTUALITY //

We've been very encouraged that, as we have pointed 
out problems with the rules or areas that were not 
clear, that the government has been very active in 
gathering views and in trying to respond to them. 

            // 	END ACTUALITY //

The regulations now limit only specialized hardware 
and software for which encryption and decoding 
operations are the key functions.  And Microsoft has 
been given approval to go ahead with its planned March 
20th launch date for Windows 2000.  (Signed)

NEB/SMN / WD



14-Mar-2000 07:20 AM EDT (14-Mar-2000 1220 UTC)
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Source: Voice of America
.