Posted by Timebusinesstoday.com – The uncertainty and politicization of the business environment has drastically increased the risks for foreign businesses in China. A report from a European business group stated that on Wednesday (20/3).
Jens Eskelund, President of the European Chamber of Commerce in China, said in a presentation in Beijing on Wednesday that the politicization of the business world was very worrying.
A lengthy report from the European Union Chamber of Commerce on China urges the country’s leaders to take more efforts to address concerns they say have “grown very quickly” in recent years.
The report, compiled by the chamber of commerce with consulting firm China Macro Group, echoes concerns also expressed by European and American companies operating in China.
Foreign investment fell 8 percent last year from a year earlier, while companies recalculated commitments in the world’s second-largest economy.
European Union Chamber of Commerce officials said the changing business environment in China partly reflected moves by Beijing to minimize risks, due to trade frictions and dependence on imports of key commodities or industrial products.
This is especially related to trade frictions with the US and discussions regarding the “separation” of supply chains from China following the disruption that occurred during the COVID 19 pandemic.
But they also say that European companies must also manage their own risks.
China has tried to emphasize that it is open to foreign companies and investment.