Meeting with Head of Unit Mr Norbert Wunner, Director General Economic and Financial Affairs

2017-02-06 | All chapters

MH gave an overview of the overall economic and business climate as well as developments over the last years (Decision 3^rd Plenum, State Council’s Decision No. 5,…) as well as Chamber’s Position Paper highlights. The discussions focused on the limited substantive progress in the reform process. The government while is promising further opening up and reform, at the same time is conceiving the world as a top-down model which is holding down the reforms. China by using this models is directing subsidies and credit to certain areas/sectors instead of really focusing on solving problems.

It was also discussed the global political situation (US elections, Brexit, EU internal problems,…) and how China is able to move swiftly and presenting itself as champion of globalisation. However, China needs to understand that for this to be real it needs credibility and reform will only happen if it gives up control. The problem is that it’s not expected substantive changes until 2018 when the new administration is in place.

It was discussed that currently China is not prepared to allow volatility as it means they would need to let go control. But this is also related to the communication problem that China faces.

Another issue discussed was the different evaluations Chinese companies can do for the acquisition of companies. This is due to the different access to the Chinese market.

NW mentioned the difficulties that DG ECFIN faces to engage with and access to the Chinese authorities. There is the feeling in this DG that China is becoming inward looking and it´s very difficult to keep a close interaction. This can be also seen in the lack of willingness to set up meetings.