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China's State Administration for Industry and Commerce made a sudden anti-monopoly inspection on Microsoft offices in four Chinese cities including Beijing, Shanghai, Guangzhou and Chengdu on Monday. Microsoft issued a statement saying it would cooperate with the inspection, but Western media accused the inspection of being suppression of foreign companies in China.
The New York Times accused the Chinese government of assisting the country's technology enterprises by squeezing US tech companies. Some Western media even related the Husi food company scandal with the inspection of Microsoft, saying China is suppressing foreign companies.
Microsoft has faced a number of monopoly accusations across the world. Last year, the European Commission imposed fines on it for failing to comply with its commitments to offer users a browser choice screen. Chinese authorities have sufficient legitimacy to investigate the company. As for the Husi food company, which sold expired meat on the Chinese market, it is more than justified to "suppress" it.
China has been adjusting its attitude toward foreign companies. On the one hand, China needs long-term foreign investment; on the other hand, it must strengthen regulations on foreign investors to ensure they serve as a positive engine in China's economic upgrading.
Some foreign companies didn't behave themselves as well as they did in Western countries. As China improves its governance over the market, foreign companies will feel as much pressure as domestic companies. They shouldn't think that China is deliberately seeking to exploit their flaws. The economy has been one key field in terms of China's boost to the rule of law. From commercial fraud to monopolies, all need to be cleaned up. The West should understand there is room for its companies to improve.
American opinion often believes that China is taking revenge on the US side, which stymies Chinese companies. The possibility that China will take revenge against US companies can't be ruled out, but it would do so in a restrained manner.
China has no intention of having a war with the US on this.
The US has obstructed Chinese companies from entering its market due to "national security" reasons. China's national security situation is more severe than that of the US, but China seldom gives such excuses. Meanwhile, China doesn't have much experience in anti-monopoly or anti-dumping investigations.
The Chinese government should take a bold approach in regulating foreign companies regardless of complaints and criticism from Western opinion. China's investment environment will not deteriorate because of this.
Western opinion has always sided with Western companies. This is understandable, but we should be able to see clearly the role of Western opinion in conflicts between China and foreign countries.
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