One major hurdle faced by foreign companies operating in China is the presence of state-owned enterprises, says the European Union Chamber of Commerce in China.
Chinese state-owned enterprises receive preferential treatment from the government such as priority to get financing — which distorted competition in many industries, said the European Union Chamber of Commerce in China.
"Sometimes, you want actually China to wake up and see you can't only throw money at the economy. You actually have to change the structure," he said. One major hurdle that foreign firms operating in China face is the presence of Chinese state-owned enterprises, the paper said. Those firms, also known as SOEs, receive preferential treatment from the government such as priority to get financing — and that special treatment distorted competition in many industries, according to the report.
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