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Doing Business in China Getting Tougher For U.s. Companies


Just a few years ago, the mantra in Silicon Valley went like this: What's your China strategy? A 2010 update could be: What's your China headache?

China's allure is stronger than ever. It remains a cheap place to manufacture goods, and its rapidly growing domestic market includes 400 million Internet users and 700 million mobile-phone subscribers. But a country already known for obstacles is becoming less welcoming to foreign businesses.

Google's frayed relations with the Chinese government over intellectual property theft and censorship spotlight the growing discontent many Western companies are experiencing in the country. And American companies are certain to face even tougher conditions there if U.S.-China tensions continue to rise. Much like Google, other companies are reviewing their commitments to China, longtime Silicon Valley forecaster Paul Saffo says. "I think we will see more companies opt to quietly back away or at least limit their exposure in the Chinese market," he says.

From San Jose Mercury News
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