December 23, 2021 11:27
More than eight out of 10 Korean companies operating in China say conditions there have deteriorated compared to a decade ago and they suffer discrimination.
The Federation of Korean Industries polled 131 Korean companies that set up business there.
The vast majority or 111 companies said investment conditions in China have worsened over the last 10 years. The biggest reason cited is risks related to Chinese government regulations, while others include discrimination, the trade war with the U.S. and tougher environmental regulations.
They are particularly worried about Chinese President Xi Jinping's "common prosperity" campaign imposing tougher regulations on big tech, cybermoney, private education and game companies that are blamed for income disparity.
Most of the Korean businesses said they were negatively impacted by the regulations and fear the campaign will only intensify in the next five years.
A majority also said discrimination against foreign businesses has increased, be it through officials dragging their heels during authorization processes, punitive safety checks and environmental inspections, or being disadvantaged in terms of financial support and tax breaks.
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