What Troubles US Firms in China? For Most, Lack of Faith in Law

The newest intellectual property survey was released Wednesday by the American Chamber of Commerce in Shanghai, which annually polls US firms for their concerns over operating in China.

The top issues listed were rising costs, the unpredictability of regulations, and the difficulty of protecting intellectual property.

In recent days US and Chinese leaders have traded polite but firm words over related disagreements—with US President Obama calling on China to follow the "rules of the road" of the international system.

Despite Chinese leaders' protestations that they have taken solid steps to protect intellectual property, 69 percent in the new survey claim to have seen protections unchanged or worsening over the last year. Roughly the same number claimed that law and regulation as a whole had also either stagnated or worsened, and the Chamber of Commerce itself pointed towards the lack of enforcement of many laws that are on the books. Largely due to the unpredictability of the Chinese legal system, the survey claimed, "China is a difficult place to do business."