The European Union Chamber of Commerce in China launches its seventh annual Position Paper Go back »

2007-09-11 | All chapters

The European Union Chamber of Commerce in China launches its seventh annual Position Paper

Beijing, 11th September 2007. The European Union Chamber of Commerce in China today launches its annual European Business in China Position Paper. This is the European Chamber’s first Position Paper since China completed its five-year WTO accession period.

Joerg Wuttke, President of the European Chamber commented, “With the continued strong growth of China’s economy, the business environment remains attractive for European companies. But the investment climate is becoming more complex and challenging for foreign businesses operating in China. Despite real improvement in the legal and regulatory regime, companies in some sectors face new or increased requirements in areas such as technology transfer. Protecting intellectual property rights remains a major concern.”

While welcoming new laws and regulations which clarify the rights and obligations of companies operating in China, the European Chamber notes that a more systematic approach to the implementation of new legislation is still needed. The Position Paper provides an up-to-date European industry analysis of the current business environment in China and offers more than 100 recommendations for improvements.

The European Chamber hopes that the publication, which is written and compiled by members of the Chamber’s Working Groups, will assist China in its continuing efforts to improve the overall investment environment for both domestic and foreign companies, by increasing transparency, equality of treatment, and predictability.

Michael O’Sullivan, Secretary General of the European Chamber said, “We strongly support China’s policies of continuing economic reform, development of domestic markets, improved energy efficiency, more effective environmental protection and action to reduce social inequality. We believe that European companies can and do contribute positively to all these goals. And so we encourage China to continue to open its markets and provide a level playing field for domestic and foreign companies.”

The European Business in China Position Paper will be presented to government and regulatory agencies in China, to the European Commission and EU Member State Governments, and to a wide range of business organisations and companies in China and Europe. Following the public launch of the Position Paper in Beijing, members of the European Chamber will travel to Brussels to brief senior officials of the European Commission.

Highlights of the European Business in China Position Paper 2007/2008

Recent Positive Developments

Two-way trade between EU and China has grown by 21.6% in 2006, exceeding EUR 250 billion.  Large scale economic reforms in most sectors.  Continued European investment into China, over EUR 3.7 billion in 2006. Improved consultation in the drafting of certain legislation such as the Labour Contract Law, the Property Law and the ongoing work on the Patent Law and Energy Law. Promulgation of new legislation, including China’s first Anti-Monopoly Law. Opening up of the banking sector to foreign participation; reduction of capital requirements. Intensified efforts on energy saving and emission reduction, and the publication of the national action plan on Climate Change. The introduction of National Phase III emission standards (similar to Euro III) for new vehicles nationwide.

Challenges

Emerging trend within some regulatory bodies towards unequal treatment of foreign companies through protectionist measures. Continued lack of effective deterrence against IPR infringements. Need for greater consistency, implementation and enforcement of laws and regulations, particularly at the local level. Continued limitations on investment in certain industries such as automotive, telecoms, petrochemicals, and energy. Technical barriers to trade and investment in the form of home-grown standards, the lack of adoption of international standards and arduous type approval procedures. Sufficient time should be granted between the promulgation and the effective date of laws and regulations. Forced technology transfer for participation in certain sectors. Lack of independent regulators in certain sectors which results in the lack of effective, transparent and independent decision making. Distortions in energy prices that discourage energy saving and greater dissemination of advanced environmentally friendly technologies.

To download the press release, please click here: English version, 中文新闻稿
To download the bilingual PowerPoint presentation on the press conference, please click here: Press Conference PPT 新闻发布会幻灯片

To download the photos on the press conference, please click here:
Photo1 新闻发布会照片1, , Photo3 新闻发布会照片2, Photo3 新闻发布会照片3
Photo4 新闻发布会照片4, Photo5 新闻发布会照片5

For further information, please contact:
Grace Yao, Press Officer of the European Chamber
Phone: +86 10 6462 2066 - 30
Mobile: +86 1367 1168 084
E-mail: gyao@euccc.com.cn

For more information please contact

Xinhe Fan