Qualcomm fine augurs fairer market in China

The record anti-trust fine imposed by China on San Diego-based Qualcomm has stirred unease among foreign firms who perceive unfair treatment and a worsening business environment.

Associated with other anti-monopoly or anti-corruption probes against big foreign names, the fine, the largest ever in China, has made some foreign firms to conclude that they are "less welcome in China than before."

Released on Wednesday, the results of the Business Climate Survey by the American Chamber of Commerce show that about half of the respondents feel less welcome in China.

However, a closer look at the cases will prove their concerns are misplaced.

In the case of Qualcomm, the mobile chip titan was found to have abused its market dominance, charging discriminatory fees in China when licensing mobile chip technology, said the National Development and Reform Commission on Tuesday.

Other cases should also not come as a surprise as companies like Microsoft have long been embroiled in anti-trust probes around the globe.

Be it the anti-trust probe against Qualcomm, or the anti-corruption investigations against GSK, the only reason behind the investigations is the fact that they have broken the law. It has nothing to do with where they are from.

The cases should be seen as signs that the world's second-largest economy is working harder to make companies comply with regulations and build a more fair and equal market.

In this sense, China's business environment is improving rather than worsening.

All companies, including the foreign ones, should applaud rather than feel appalled by the authorities' increased efforts to fight monopolies and safeguard fair competition.

The Chinese market is not getting "colder", as claimed by some. It is getting fairer and more open.

Foreign firms should no longer be dwelling on the "good old days" when they enjoyed the so-called "super national treatment".

As China is building a fair market, no company will be allowed to break laws with impunity. Being a Chinese or foreign firm makes no difference.

State-owned giants China Telecom and China Unicom have been subject to anti-trust probes. Premium alcohol makers Kweichow Moutai and Wuliangye were each fined more than 200 million yuan last year for monopolistic practices.

The Chinese market might have got a little bit chillier, but only for those acting illegally, be they foreign or homegrown.

If Qualcomm got no punishment for what it did in China, all companies doing business in China should be really worried about the absence of law enforcement and a fair market.