FOREIGN COMPANIES COULD BE AN UNWELCOM INTRUSTION IN CHINA

China seems weary of international companies moving in and, as they put it, taking over local companies in order to establish monopolies. Li Deshui, head of China’s National Bureau of Statistics, told Xinhua news agency that unrestrained access for foreign companies could hurt China’s “economic security and national sovereignty.” Currently there is a heated debate within China concerning foreign companies entering the country and the degree to which they are able to do so. Although China continues to welcome any foreign investment that does not undermine its development, Li believes “We must resolutely curb any malicious acquisitions aimed at establishing monopolies in the Chinese market.” Beer, soft drink and skincare product companies were named by Li as top contenders in hurting Chinese businesses. However, while SABMiller and A-B have lately increased their presence in the Chinese market, Tsingtao and Yanjing, the top Chinese breweries, are still independently controlled. China’s Anti-Monopoly Law, which is due to come out this year, could possibly be used to keep out competition from foreign companies; however, not everyone agrees with Li’s reasoning.