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    EU trade commissioner voices concerns over European companies' future in China

    EU trade commissioner voices concerns over European companies' future in China

    European Union Trade Commissioner Valdis Dombrovskis has expressed concerns over the uncertain future of European companies in China due to recent legal and political developments. During high-level trade talks in Beijing, Dombrovskis highlighted the challenges European businesses face in navigating China's tight security laws and increasingly "politicized" business environment, DW reports.

    People stand at a shopping mall near the CCTV headquarters and China Zun skyscraper, in Beijing's central business district (CBD), China September 7, 2023.
    Source: Reuters

    He pointed out that these factors have left European companies unsure about their legal obligations when operating in China. Ambiguities in China's foreign relations law, designed to counter foreign sanctions, and recent updates to anti-espionage laws have raised significant concerns among the European business community. Dombrovskis says that these uncertainties reduce business confidence and discourage new investments in China.

    While Dombrovskis acknowledged that European companies still have an interest in investing in China, he emphasized that the conditions must be right. He also noted that Beijing's tacit support for Russia amid the conflict in Ukraine has added to the "reputational risk" for China.

    Dombrovskis was expected to express concern about the imbalance in trade between China and the EU.
    Source: Reuters

    China's Vice Premier He Lifeng expressed willingness to increase imports from the EU and cooperate on stabilizing supply chains during the trade talks. He also hoped that the EU would reconsider restrictions on high-tech exports to China. The EU's concerns over trade imbalances and a recent investigation into Beijing's electric car subsidies have added to the complex relationship between the EU and China.

    As the EU looks to diversify its sources of raw materials and reduce dependence on China, questions about the future of EU-China economic and trade relations continue to loom large.

     

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    25.09.2023, 18:44   Comments (0)   479
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