One immediate concern is whether or not China will devalue its currency. If China were to devalue the yuan, analysts say, this could spark competitive devaluations across East Asia and likely result in renewed volatility in global financial markets. The majority of respondents are also concerned about two other issues in their host countries, namely environmental pollution and lack of vision among country leadership. Issues of lesser concern for American companies operating in Asia include law and order in the streets, operating under the Rule of Law, and maintaining an infrastructure capable of supporting business. Not all challenges to doing business in Asia come as a result of conditions in the host country.
American firms operating in the region also feel the pinch of U.S. income tax laws.
On the other hand, AmCham members in general are positive about the support provided by the U.S. government representatives in their host countries. They can hardly afford not to. Harvard Professor Emeritus Raymond Vernon points out that net income for American businesses from operations outside the U.S. is now nearly half of that from domestic operations, compared to only one-tenth in the 1950's. Our survey suggests that Asia is not being left out of this explosive trend. One-fourth of company representatives surveyed say their firm already sells products or services in Asia via the Internet.