‘Don’t waste the crisis’: EU business group presses China to open markets
- European chamber’s annual survey finds companies grappling with a more politicised, state-dominated environment
- Forced technology transfers also a big concern for foreign players in the country
China’s business environment is becoming increasingly politicised and foreign firms are having to compete against an evermore dominant state sector, according to a leading European business group.
In its annual survey, the European Union Chamber of Commerce in China for the first time asked its member companies about the political environment in the country – after foreign companies were caught up in a string of controversies over Taiwan and Hong Kong.
About 43 per cent of the respondents said the business environment in China had become more political and they felt pressured to take action, “sometimes under threat of punishment by authorities”, such as reviewing corporate websites to ensure that Taiwan, Hong Kong and Tibet were identified as part of China.
“Similar to censorship in the media, all business decisions are influenced by their perceived or potential impact on local government or party attitude, even if there is no specific action from the government,” the report released on Wednesday quoted a member as saying.
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The report also highlighted the need for “bold and binding” changes to state-dominated sectors to make the market fairer and more attractive to foreign investors.
