European Chamber Press Release on the publication of the revised Foreign Investment Catalogue Go back »

2014-11-05 | All chapters

Beijing, 5 November 2014 – The European Chamber welcomes all efforts to remove barriers to foreign investment in China. The revised Foreign Investment Catalogue (draft) shows further and limited opening in select sectors, and some tightening in others, although less so.

However, the continued usage of an investment catalogue, even if revised, still falls short of the European Chamber’s expectations – and, in fact, is only a small step for the Chinese Government’s own stated ambitions of giving full play to the market.

The reality, that China still retains a distinction between external and domestic investment, is not contributing to its reform agenda – particularly in light of its ongoing negotiations for bilateral trade agreements with key world economies.  In doing so, China places conditionality on the opening of its marketplace by creating a framework that only accepts foreign investment only where it is perceived to serve specific domestic industrial policies, which will make these negotiations more difficult.

European Chamber President Jörg Wuttke stated, “The European Chamber is surprised that we are today still commenting on a revised Catalogue, rather than a narrowed Negative List in view of the ongoing discussion for an EU-China Bilateral Investment Agreement.” 

Mr Wuttke continued, “Following on from the 3rd Plenum’s Decision, the Chinese Government highlighted the negative list approach for the China (Shanghai) Pilot Free Trade Zone as the definitive model for China to govern investments in the future. What is now called for, is the political will to ensure a speedy, nationwide rollout of this model.”

The Chamber appreciates the opportunity to comment and will engage with the authorities, putting the focus on the quality of the changes, not the quantity.

 

About the European Union Chamber of Commerce in China

The European Union Chamber of Commerce in China was originally founded by 51 member companies based in China on 19th October 2000. It now has approximately 1,800 member companies throughout China across nine offices in seven chapters. The rationale for the establishment of the European Chamber was based on the need of the European Union and European businesses in China to find a common voice within various business sectors. The European Chamber is recognised by the European Commission and the Chinese authorities as the official voice of European Business in China, and seeks greater market access and improved operating conditions for European companies.

Please click here to view the Chinese press release.

 

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Xinhe Fan

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