China: The European Union’s (EU) trade chief Mr. Valdis Dombrovskis, has said that tough security laws and a more politically influenced business environment have made it difficult for European companies to understand their obligations and question the future in China.
The trade commissioner, Mr. Dombrovskis, stated this in a speech at Beijing’s Tsinghua University.
The Chief stated that China’s denial to blame ally Russia for its war in Ukraine also poses a “reputational risk” for the country.
Mr. Dombrovskis mentioned that being transparent and open is a successful strategy in the long term, especially as trade tensions rise between the European bloc and China.
“China is navigating a challenging transition from an investment-led economy to a broad-based economy. For this, it needs to remain open,” Mr. Dombrovskis added.
Mr. Dombrovskis began his four-day trip in response to a recent report by the EU Chamber of Commerce indicating a significant dip in business confidence, hitting one of its lowest points in years. Additionally, this comes after Brussels decided to initiate an investigation into Beijing’s subsidies for electric cars.
The probe might lead the EU to defend European car manufacturers by imposing penalties on vehicles they think are being sold at an unfairly low price.
China’s commerce ministry criticised the EU for “naked protectionism” and expressed concern that these measures “will harm China-EU economic and trade relations.”
The Chief emphasised that China continues to be an appealing investment opportunity for European businesses. Mr. Dombrovskis highlighted that China continues to be an appealing investment opportunity for European businesses.
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