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2008-02-26 | All chapters

President of the European Chamber calls for fair competition, strong IPR protection and better government services at the 6th Transnational Corporations China Forum

President of the European Chamber, Joerg Wuttke gave his opening remarks at the 6th Transnational Corporations China Forum in Beijing on 22nd February 2008. He provided suggestions on the development of transnational corporations, especially for Chinese companies, and also emphasized the need for fair competition, strong IPR protection and better government services in order to make companies competitive and sustainable in China.

"Big companies that have lasted for a long time always function in competitive markets. If you want to make sure that companies are competitive, don’t protect them or over-protect them,” said Joerg Wuttke, quoting Michael Porter’s theory of "demanding customers, reliable suppliers and sever competition” as basic requirements for competitiveness and sustainability. He also took the booming Indian software industry as an example to prove that less regulation from the government and freer competition in the market can motivate the industry.

Talking about IPR issues, Mr Wuttke reiterated the enforcement problems and low penalty clauses, and pointed that “90% - 95% of legal cases of IPR are Chinese companies against Chinese companies”. The effective enhancement of IPR protection is essential for Chinese companies to go forward.

Mr Wuttke suggested that in order to attract and keep more competitive companies in China, the Chinese government also need to improve their services and work out a fair taxation system to balance regional disparities.

At the beginning of his speech, Mr Wuttke introduced the Chamber’s background, independent financial position, recent developments and lobbying functions.

The 6th Transnational Corporations China Forum was organized by the Chinese Academy of International Trade & Economic Cooperation under MOFCOM, Beijing New Century Academy on Transnational Corporations and China International Economic and Technology Cooperation Promotion Association. For more information about this forum, please click here.

 Click here to download Joerg Wuttke’s presentation, and click here to read his speech (translated into Chinese) online.