Richard Lesser, president and CEO of the Boston Consulting Group and Christoph Nettesheim, senior partner and former managing director of BCG Greater China, share their views on the continued prospects for foreign companies in China and what lies ahead.

Richard Lesser:

It is easy to offer a stock answer on the question of investigations: "We do not know what the future is." But that is not the right way to assess the situation, as it does not take into account the challenges faced by foreign companies.

China has been a difficult place for various reasons for many years. Premier Li (Keqiang) was incredibly frank and direct when he said China wants to establish clear rules and regulations and enforce them consistently across all companies, and create an environment that is conducive for business.

Most of the foreign companies are going through a period of uncertainty, due to recent investigations. Obviously, there is a lot of anxiety on the outcome of the investigations.

But if one factors in the intentions of the top leadership, the eventual outcome of a level-playing field, and articulated rules will create an environment that welcomes all kinds of businesses.

That is not only good for China but also for the rest of the world.

Christoph Nettesheim:

It is still too early to predict whether it is the right time for foreign companies to exit China and tap other markets, as I believe that China will continue to be a crucial growth market for foreign companies.

From a consultancy perspective, many of our clients used to seek our help on "understanding China" and on other aspects relating to market entry.

That is not the case now. Most have an established presence in China and their problems are more to do with organizational issues. There are also several foreign companies that have their second headquarters in China. So we not only have projects that are specific to a country or region in China, but also others that cater to wider geographies.

(China Daily European Weekly 11/07/2014 page22)