Position Paper Presentation to French Ambassador Go back »

2013-10-16 | Beijing

Position Paper Presentation to French Ambassador

The President gave a short introduction of the Position Paper 2013/14:

-          40 separate Working Group and Forum position papers included in the document. These are sector-specific or address horizontal issues. Also included are eight city-specific papers written from the locations, where the European Chamber has a physical presence in China.

-          As China’s economic growth gradually slows, the country faces challenges in transforming its economic structure to a more sustainable model that can support its continued transition from a developing nation to a high-income economy. Many of the recommendations in this Position Paper, if implemented, would contribute to the transition of China to a sustainable economic system based on a fair and transparent market environment.

The President then went into more detail on the 3 main topics of this year’s Position Paper:

1. Striking a new balance between government control and market forces

1.1. Strengthening the role of government: the government’s role as a regulator should be strengthened in a way that allows it to become more efficient; protect its independence; leverage transparency and consultation; and empower regulatory implementation and enforcement functions.

1.2. Reducing the role of government: wider economic restructuring requires a decrease in government control. The state-led growth model, control of the financial system, industrial policies and the role of state-owned enterprises (SOEs) all need to be reviewed and reformed if market forces are to make an impact.

-          This is a slightly provocative stance, but there is confusion in Government guideline enforcement. The State needs to put understanding in order, then step back and let market forces take over.

2. Policy, technology and systems

2.1. Reassessing nationalistic indigenous innovation policies: promoting domestic innovation through catalogues, indigenous standards, forced technology transfer and closed public procurement practices prevents China from creating an innovative society, distorts markets and ultimately slows China’s rise up the value chain.

2.2 Employing technologies in a systemic approach: a regulatory approach that takes a more systemic approach based on targets, enforcement and compliance will help ensure a market based response so that existing technologies are efficiently deployed, used and absorbed.

 - The problem that the Chamber has identified is that the State takes a top-down non-systemic approach, using standardisation and catalogues, therefore utilising only 40% of international standards. There is concern about the quality of healthcare, for example.

3. China and the world

3.1. Reducing market access barriers: the vast contrast between market access for European companies in China and Chinese companies investing in Europe causes tensions that may add obstacles to the internationalisation of Chinese companies.

3.2. Taking an international leadership role: integrating international practices into domestic policies through better engagement and leadership in international standards and regulatory bodies, and through taking an active role in the expansion and evolution of international trade and investment framework rules, will assist the internationalisation of Chinese companies and improve China’s global reputation.

-          The first point being industry related, the second point being politically related – China’s relationship with the world.

The President introduced the European Tour 2013, which took place between 16th September - 10th October, where a total of 14 cities were visited.

The delegation of 35 people visited Brussels between 16th-18th Sept, and had over 60 meetings. The highlights were the meetings with:

-          President José Manuel DurãoBarroso

-          4 Vice-Presidents: Almunia, Kallas, Kroes, Tajani

-          Comm. De Gucht

-          Comm. Borg

-          Comm. Ciolos

-          Comm. Hedegaard

-          Comm. Semeta

-          Comm. Oettinger

-          Director-General Demarty

-          3 Commissioners Cabinets

Other highlights included the following meetings and presentations:

-          Presentation to EC officials

-          Over 20 other working-level meetings

-          Presentation to International Trade Committee and Delegations Relations with PRC, European Parliament

-          European Economic and Social Committee

-          PRC Ambassador to EU

-          Presentation to the business community accompanied by Commissioner De Gucht

Key topics and themes included:

-          One Voice

-          EU-China Investment Agreement, Regional FTA’s, recent trade cases

-          Shanghai Free Trade Zone

-          EU-China Dialogues; upcoming Business-Summit

Achievements from the European tour were:

-          More visibility than ever

-          Working-level meetings more targeted (i.e. AFB and Aerospace)

-          One voice being communicated to EU institutions and member states (14 cities)

-          Follow-up by certain officials (i.e. EU-China High-Tech Working Group meeting)

Topics regarding Renewable Energy discussed included:

-          Anti-Dumping (solar)

-          Overcapacities in other sectors, e.g. wind

-          Focus more on life cycle-costs, not just capacity

-          Tender process: Quality and life-time should be valued higher than just the price

-          Lack of access to R&D funding

The President also discussed important up-and-coming events that are being lead, or supported, by the Chamber – which have significant political and commercial importance:

-          The EU-China Urbanisation Forum (20th November - unconfirmed);

-          The EU-China Summit (20th-21st November - unconfirmed);

-          The EU-China Business Summit (21st November - unconfirmed);

-          The EU-China Exhibition on Urban Development (20th-23rd November – confirmed).

President Cucino then handed the Position Paper to H.E. Ambassador Ms. Sylvie Bermann.

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