CHINA is under pressure to give foreign companies the freedom to localise, or silo operations, as regulations and market barriers confine their activities and induce them to reassess their futures, reports Hong Kong's South China Morning Post.
European companies are increasingly being forced to silo their operations in China, part of a wider trend amid a tightening grip on national security, protectionist measures and regulatory fragmentation, the European Union Chamber of Commerce in China said in a report.
The report, based on surveys conducted between August and November and including responses from 128 member companies, added that siloing - the cutting off of China-based functions from operations in the rest of the world - is a response by multinational companies to mitigate risks and comply with regulations.
Chinese legislation has guided companies to pursue extensive localisation, in their supply chains, workforce, sales and procurement functions, and many have siloed their R&D, data and IT systems, in hopes of ensuring market access and potential inclusions in procurements.
SeaNews Turkey
European companies are increasingly being forced to silo their operations in China, part of a wider trend amid a tightening grip on national security, protectionist measures and regulatory fragmentation, the European Union Chamber of Commerce in China said in a report.
The report, based on surveys conducted between August and November and including responses from 128 member companies, added that siloing - the cutting off of China-based functions from operations in the rest of the world - is a response by multinational companies to mitigate risks and comply with regulations.
Chinese legislation has guided companies to pursue extensive localisation, in their supply chains, workforce, sales and procurement functions, and many have siloed their R&D, data and IT systems, in hopes of ensuring market access and potential inclusions in procurements.
SeaNews Turkey