With “business confidence now at an all-time low” due to slowing domestic demand and overcapacity in some IndustriesThe annual report “The State of European Business in the World” called for ChinaBeijing to open up its economy and allow a freer market to determine the allocation of resources.
The report also recommended introducing policies to boost domestic demand.
According to the report published by European Chamber of Commerce In China, Wednesday, profit margins in China are at or below the global average for two-thirds of companies surveyed earlier this year.
In August, China filed a complaint with the World Trade Organization over tariffs imposed by European Union On electric cars made in China.
It also launched an anti-dumping and anti-subsidy investigation into European dairy products, wine and pork exports. These tit-for-tat measures have raised concerns about a possible outbreak of Trade war Widespread.
And you see many European companies That returns Investment In the world’s second-largest economy, these risks are not worth it, due to issues including China’s economic slowdown and a politicized business environment.
“For some European shareholders, the risks of investing in China are starting to outweigh the rewards, a trend that will only increase if key trade concerns are not addressed,” Jens Eskilund, president of the European Chamber of Commerce in China, said in the report’s introduction.
The European Chamber of Commerce report proposes more than 1,000 recommendations to China to address the challenges and problems facing European companies in China and boost investor confidence. Among these recommendations is a call for China to refrain from punishing foreign companies for the actions of their governments.
Other recommendations include ensuring that policies are in place to attract foreign investment, and refraining from “modifying these policies.”
The report also recommended that the EU should engage proactively with China, and that its responses should be “measured and proportionate” when disputes arise with China.
