Chi-Cham USA! The Potentialities and Limits of PRC Company Business Associations in the US

Dr. Jean-Marc F. Blanchard's picture

Chinese companies from the People’s Republic of China in the US have been organizing to promote their interests as shown by the China General Chamber of Commerce-USA (CGCC)’s expansion. The rise of the CGCC mirrors the development of foreign business associations in China such as the American Chambers of Commerce (AmCham China). The CGCC’s mission is to “promote the brand of Chinese companies collectively, protect their legal rights, and advocate for fairer regulation” and to serve a bridging function.

It remains to be seen, though, if the CGCC and similar groups will be successful in promoting their member’s interests. First and foremost, such groups need to conduct government and public relations in a manner beyond reproach given most Americans’ unfamiliarity with and widespread suspicions towards Chinese firms. Second, as AmCham China learned years ago, a good business association does not just serve its members, but also serves the local community. Third, successful Chinese business associations will be those that give non-Chinese nationals an active role lest they be perpetually stigmatized as “alien.” Fourth, while it is certainly normal for Chinese companies to want to defend their legal rights, not all rights are deemed equally legitimate and thus exploiting some may be “penny wise, pound foolish.” It is worth pointing out that the U.S.-China Economic & Security Commission recently lambasted Chinese companies for using their “legal rights” to escape the jurisdiction of US courts and government agencies. Lastly, around 38% of Chinese investment in the US links to state-owned enterprises (SOEs), an investor type that evokes great sensitivities. This makes it critical for groups like the CGCC, which has many SOE members, to thinks carefully about their activities and messages. Ultimately, Chinese business groups must be attentive to issues like those enumerated above otherwise they risk being a bridge to nowhere.