High-profile cases like Google have led some to speculate that the climate for foreign businesses in China might be getting a little cooler. And in fact a recent report by the American Chamber of Commerce in South China shows that there are some concerns, including regulatory issues, local competition and rising labor costs. According to the report, over 80 percent of the companies surveyed said they have hired new employees. Also, foreign investment budgets for 2010 have increased by 44 percent, nearly recovering to pre-financial crisis levels.

So, is China's business climate cooling for foreign companies? What can China do to keep attracting foreign investment? And what strategies should foreign companies take when doing business in China?

Ni hao, you're listening to  People In the Know, bringing you insights into the headline news in China and around the world, online at crienglish.com, and here on China Radio International.

In today's program we'll discuss China's business climate for foreign investment. So let's get started.

First, we'll speak with Liu Baocheng at the University of International Business and Economics.

And after a short break, we'll speak with a member of the European Chamber of Commerce in China.

The business climate in China has changed dramatically since the reform and opening up began more than 30 years ago, and continues to change.

Our next guest has been in China for 30 years. Gilbert Van Kerckhove is the founder of Beijing Global Strategy Consulting and a member of the European Chamber of Commerce.