Recently a Bloomberg article entitled “China Causing ‘Growing Frustrations’ With Curbs on Businesses, Locke Says” spliced Locke commentary gathered at an American Chamber of Commerce hosted event. Locke was quoted as saying “There is a gap between the goals China identified in its five-year plan and the steps it is taking to achieve them.”
The article points out that Chinese companies are given subsidies and anticompetitive legislation at the expense of foreign competition. Also, Locke is noted complaining about two policies he views as restrictive: 1) prohibiting foreign investment or restricting it by requiring a joint venture vehicle to compete in many industries; 2) requiring government approvals for certain investment decisions.
Examples of Locke’s stance were given, such as “China’s restrictions had created a domestic monopoly that failed to best serve consumers’ needs” in the credit card industry and “State-owned banks were also skewed toward serving government-sector companies” in the banking industry. Locke wants more American companies in China and he wants those companies with financing options given by Chinese banks or, better yet, American ones.
One of Locke’s quotes (“creating seeds of doubt in the minds of foreign investors as to whether they are truly welcome in China”) comes after the statement: China’s policies deny its companies from receiving technology, management skills and jobs that more investment would bring. From this statement it is clear that Locke is using his belief that more openness to U.S. goods, American technology and management skills would create more jobs and help China shift to a consumption based economic growth model.
From the Bloomberg article, we are to believe that Locke is a major promoter of the American Chamber of Commerce in China and he is a strong proponent of economic reform and will fight for market access for American investment in China.