Chinese firms in US upbeat

The joint survey also finds that 92 percent of executives agreed that overcoming cultural differences in doing business was an obstacle for their companies. For 45 percent, the culture gap was a "major challenge" to entering the US market.

More than one-third, or 37 percent, of respondents said general economic conditions in the US posed a "major challenge" for their companies, while 28 percent said complying with US laws and regulations fit that description.

"Entering a new foreign market is challenging for any company, however large or small," said Margery Kraus, founder and CEO of APCO Worldwide, a global public relations and business-strategy consulting firm based in Washington whose business includes helping Chinese companies expand in the US and US companies expand in China.

"Wherever you go, there will be differences in culture, language, regulations, consumer habits, infrastructure, human capital, so on and so forth," she said. "It takes time to adapt to this new environment."

To succeed in the US, a Chinese company must have experienced personnel in both markets who can detect nuances, understand how business is conducted across cultures and identify key stakeholders.

The China Daily-APCO survey is intended to provide in-depth understanding drawn directly from experiences of Chinese enterprises in the US.

"We feel there is more to the story of Chinese investment in the US than the stories you hear in the media," Kraus said.

Lee said that since late 2011, China Daily has made coverage of Chinese companies in the US a top priority. This spring, the newspaper will publish an illustrated book, Chinese Companies in the United States, that includes more than 60 stories by China Daily reporters as well as outside experts.

"We hope the survey and the book help Chinese companies enjoy smooth sailing in the US and foster understanding among the American public about Chinese direct investment," he said.

In the United States, many industries are highly regulated and foreign companies should appreciate this to avoid mistakes that could damage their reputations or cause delays, Kraus said.

"It will naturally take some time for a new market entrant to fully grasp the range of new regulations and standards they face in any new market," she said, citing differences between the US and China in accounting standards, marketing regulations and advertising.

American politicians and pundits often talk of threats to US national security posed by Chinese direct investment, while Chinese officials and media outlets accuse the US of fear-mongering. However, only 22 percent of business leaders in the survey cited the US political climate or a general bias against Chinese companies as a major challenge.

Last September, US President Barack Obama signed an executive order requiring Chinese-controlled Ralls Corp to abandon a wind farm project near a military base in Oregon and divest all of its related assets. It was only the second time a US president formally blocked a foreign acquisition; the first was in 1990. Ralls executives are pursuing a civil lawsuit against the Obama administration.

In October, a report by two members of the House of Representatives Intelligence Committee alleged that Chinese telecommunications-equipment manufacturers Huawei Technologies Co and ZTE Corp could be a national-security threat.

The cases have been portrayed by Chinese officials and citizens as signs of hostility toward investment in the US from China.

Kenneth Jarrett, who served as chairman of the American Chamber of Commerce in Shanghai and is APCO's chairman for greater China, said he was pleased that survey respondents didn't mention political attitudes or bias as major problems.

"The report is positive in terms of Chinese experience in the United States. Even if they have challenges of market entry at the beginning, their market entry is a success and the vast majority said it's easy to do business in the United States," said Jarrett, a former State Department official whose diplomatic career included serving as US consul general in Shanghai.

"We hope that this survey will help counter some misperceptions about Chinese investment in the United States," he said.

Executives who described their companies' US experience as easy credited factors such as transparency and fairness in the marketplace, the hiring of local personnel to help navigate the US business environment and culture, and strong demand for their products and services.

The optimism of Chinese companies operating in the US matches the sentiment of US companies in China - around 90 percent, according to recent surveys.

The 92 percent of Chinese businesspeople surveyed by China Daily and APCO who expressed a positive outlook for their company included 53 percent who were "very positive" about the next five years. Only 6 percent and 2 percent, respectively, reported feeling "somewhat negative" or "very negative" about the outlook.

Among those executives who anticipate growth for their companies, a big reason is a belief that the US economy will expand at a faster pace in coming years. They also say their experience from being on the ground has positioned them for success in the US.