European Union Chamber of Commerce in China: Broader Implementation of the Third Plenum Decision and Further Adherence to the Rule of Law is Needed for China’s Reforms Go back »

2014-09-09 | All chapters

After a decade of limited and piecemeal reform, the Decision of the Third Plenum was welcomed by European industry as a framework to address China’s growing economic and societal issues and transition to a fairer system and from exclusive growth to inclusive participation. A resolute implementation of the Decision will not only help to rebalance the economy and improve the unfair business environment for private and foreign companies, it would also improve the quality of life of China’s citizens by placing greater emphasis on environmental and social impacts over pure economic growth.

European Chamber President Jörg Wuttke said, “China today stands at a crossroads. China has enough firepower to create sustained medium-levels of growth for many years to come if sustainable drivers of growth based around services, value-added, innovation and efficiency are fostered now. As it is industry that ultimately produces these drivers, the solution must lie within the creation of a business environment that cultivates advanced, adroit and creative outputs. This is only possible within a properly functioning market economy.”

Mr. Wuttke continued, “The decisive role earmarked for the market in the Decision shows that China’s leaders have recaptured some of the necessary reform zeal of the 1990s. The groundwork has been laid, but it’s now time that China’s leadership walks the talk across the full spectrum of the business environment. European industry is taking the Party by their word, but the proof will lie in whether the rhetoric for reform will be quickly matched by corresponding market opening and the creation of a true level playing field. This means that China’s leaders must avoid inherent contradictions within the Decision, such as continuing to afford the state sector a leading and dominant position, as well as continued protectionist inclinations. If this happens, China has the opportunity to put in place a process akin to a domestic WTO accession that can reap great dividends.”

The European Chamber President also stated, “Amidst difficult business headwinds and continued unfavourable treatment, European companies have been setting more modest expectations and revising down investment plans for China. The Decision has raised their hopes and expectations. If these hopes are dashed and they have to continue to operate in a discriminatory environment, not only would European firms likely temper their level of commitment to China and doubt their own ability to succeed, they would also doubt China’s ability to succeed. This is because sustained growth going forward can only be achieved if China creates the environment in which market forces can fully play out. While China has a strong track record of managing its past economic challenges with better results than many had predicted possible, no country is invulnerable to systemic crises.”

About the European Union Chamber of Commerce in China

The European Union Chamber of Commerce in China (European Chamber) was founded by 51 member companies on 19th October, 2000. The rationale for establishing the European Chamber was based on the need of the European Union and European companies to find a common voice across the various business sectors throughout China. The European Chamber has grown to more than 1,800 member companies and operates from seven chapters: Beijing, Nanjing, Pearl River Delta (Guangzhou and Shenzhen), Shanghai, Shenyang, Southwest China (Chengdu and Chongqing) and Tianjin. The European Chamber is recognised by the European Commission and the Chinese authorities as the official voice of European business in China. Its advocacy activities are maintained through the efforts of its 45 working groups and forums, and active participation in the legislative process.

About the European Business in China Position Paper 2014/2015

The European Business in China Position Paper (Position Paper) is the European Chamber’s primary annual publication. This 14^th annual edition of the Position Paper offers Chinese policy-makers over 800 recommendations that draw directly from the knowledge and expertise of the European Chamber’s 1,800 member companies. The recommendations were formulated over a six-month consultative process by 37 separate working groups, covering 28 vertical industry sectors and nine horizontal cross-industry sectors.

The Position Paper contains general and specific recommendations to Chinese policy-makers, outlining suggested steps to improve the Chinese business environment. These cover general recommendations to improve the administrative and operational business environments, as well as recommendations aimed at identifying areas where China could benefit from giving greater market access to foreign-invested enterprises.

Over the coming year, the European Chamber will present the Position Paper to relevant Chinese authorities at both ministerial and working level to identify possibilities to cooperate together to promote the implementation of these recommendations. The Position Paper will also be presented to European authorities, both with the European Union institutions following the change in leadership of the European Commission later this year and in EU member states as part of the European Chamber’s annual European Tour.

To download this year’s Position Paper, please visit:

http://www.europeanchamber.com.cn/en/publications-position-paper

For more information, please contact:

Mr. Max Merkle｜European Union Chamber of Commerce in China

Communications Coordinator

European Union Chamber of Commerce in China

Office C412, Beijing Lufthansa Center, 50 Liangmaqiao Road, Beijing 100125
Tel: +86 (10) 6462 2066 *25

Fax: +86 (10) 6462 2067
Email: mmerkle@europeanchamber.com.cn

For more information please contact

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