A request for an equal level of opening up between China and the US would be really difficult, given the two countries different economic growth levels, Chinese experts made comment in response to the American Chamber of Commerce in China (AmCham China) report which says US companies face unprecedented challenges in China in 2017. 

With uncertainty stemming from political and economic transitions in both China and the US, 2017 will likely be one of the most challenging years in decades for US companies in China, the AmCham China said Tuesday.

In its newly released 2017 American Business in China White Paper, the chamber noted that despite the clear benefits of foreign direct investment, access to China's markets remains relatively restricted, and many of the deals that bring Chinese investment into the US could not happen in reverse.

Among 462 member companies interviewed by AmCham China, about 31 percent said that the investment environment in China is deteriorating, while only 24 percent believe that it is improving, said the white paper.

As China is going through economic transformation and upgrading, the country now imposes stricter market access for some industries that involve pollution and high energy consumption, feature polluted and energy consumption industries, like processing trade, said Zhuang Rui, deputy dean of the Institute of International Economics at Beijing-based University of International Business and Economics.

That is unlike the early 1980s when the country began to open its market, and this shift has indeed hindered foreign investment in these sectors, Zhuang said.

Zhuang told the Global Times on Tuesday that rising labor costs and stricter requirement for the quality of foreign capital may cause US companies to believe that it is harder to do business in China.

"But that does not mean the Chinese investment environment is deteriorating because about 11 free trade zones across the country have adopted the 'negative list' approach for regulating market access and the Ministry of Commerce shifted from an approval system to a record-filing system for establishing foreign-invested enterprises [in 2016]," Zhuang said. "All these efforts show that China is further opening up to foreign capital instead of the other way around."

The white paper said that challenges faced by US companies in China include the rule of law, barriers to investment and obstacles to innovation. An unbalanced investment relationship between China and the US can be found in industries including agriculture, vehicles, securities, construction, engineering and design.

For example, foreign investment in biotech crop breeding, seed production and commercialization is prohibited in China while foreign investment in biotechnology is permitted without an equity cap, according to the white paper.

The Chinese government is expected to implement market opening in more sectors to achieve a more balanced investment relationship, AmCham China said, noting that in sectors where Chinese businesses can invest in the US, American companies should be able to do so in China.

"It is unreasonable and impossible to require an equal level of opening up between China and the US because the two countries differ in economic growth levels, industrial structure and development phase," Zhuang noted.

Although the chamber did not mention it, the US has also imposed many restrictions on Chinese companies that seek growth in its markets, Wang Jun, a senior economist at the Beijing-based China Center for International Economic Exchanges, told the Global Times Tuesday.

China and the US are expected to actively advance bilateral investment as well as trade through talks, Wang said.

China has so far made much progress [in opening up], which should be affirmed, according to Zhuang.

US e-commerce giant Amazon showed its confidence in the Chinese business context, saying that "China is one of our strategic markets across the globe and we are committed to growing our business in China."

Amazon told the Global Times Tuesday that China's supply-side reform and the "One Belt, One Road" initiative have further injected vitality into cross-border e-commerce development. "We are optimistic over China's business environment prospects," Amazon said.

"We are experiencing a clear increase in uncertainty as the US-China relationship enters a new era, and multinational companies spanning this relationship, both American and Chinese, are paying close attention to developments as they make their plans," William Zarit, chairman of AmCham China, told a briefing in Beijing.

"Nevertheless, it is becoming apparent that many things need to change in the bilateral relationship. We hope that the recent meeting between the presidents of the two countries will mark the start of tangible progress toward a healthier, more balanced relationship," Zarit said.

"Changes are needed to rebalance the bilateral economic relationship. We urge China to reform by building trust through transparency, promoting development through open investment and stimulating innovation through global cooperation," the chairman noted.