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2022-09-21 | All chapters

European Chamber Advocates for Beijing’s Return to Reform Agenda

Beijing, 21st September 2022 – The European Union Chamber of Commerce in China today released its European Business in China Position Paper 2022/2023 (Position Paper), advocating for the Chinese Government to apply its proven toolbox of pragmatic reforms in the face of economic headwinds and rising geopolitical tensions.

While in the past Beijing’s reform agenda helped to ensure stability, propel economic growth and facilitate huge inflows of foreign direct investment, now ideology is trumping the economy.

In 2020, when China rebounded quickly from the pandemic relative to the rest of the world, the country came to be viewed as a safe haven for investment. However, adherence to an inflexible COVID-19 policy has led to unprecedented disruptions to business and exacerbated pre-existing challenges. Factors such as favouritism towards state-owned enterprises and increased politicisation of business have further eroded China’s standing as an investment destination. Companies are increasingly viewing the country as less predictable, reliable and efficient, and with geopolitical tensions on the rise, its future is less certain.

Inbound investment flows from Europe already indicate a changing trend. Over the past four years, the bulk of European FDI into China has been contributed by just a handful of large companies, while the rest have put their China operations in wait-and-see mode as they evaluate alternative markets that can provide greater certainty.

The European Chamber believes that comprehensive market reforms would be the most effective way for China to realise its economic potential and quickly rebuild investor confidence. However, for China to undertake necessary reforms, it is vital that political space be given to policymakers to ‘make mistakes’, discuss ideas and ultimately change course – something that was previously a characteristic of Chinese policymaking.

Despite the heightened difficulties facing European companies in China, they are committed to staying and improving the business environment, as illustrated by the 967 constructive recommendations put forward in the Position Paper 2022/2023. As the European Chamber’s most important publication and the cornerstone of its annual advocacy plan, the Position Paper was compiled by its 35 working groups and sub-working groups over a nine-month period.

“European companies are still eager to contribute to China’s economic development, but investment into the country is unlikely to increase while China keeps its doors closed and companies perceive political, economic and reputational risks to be mounting,” said Jörg Wuttke, president of the European Union Chamber of Commerce in China. “Companies are also crying out for transparency in the business environment, as they must now align their China operations with both corporate pledges and new supply-chain legislation in the EU and the United States.”

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中国欧盟商会倡议中国政府重拾实干精神,回归改革道路

        2022年9月21日,北京——中国欧盟商会今日发布《欧盟企业在中国建议书2022/2023》(简称《建议书》),倡议中国政府为应对经济逆风和地缘政治紧张局势,重拾实干精神,回归改革道路。昔日,改革开放曾助力维护社会稳定,推动经济发展,吸引大量外商直接投资。如今,政治任务却优先于经济发展。

        2020年,当世界各国仍处于新冠疫情的水深火热中时,中国迅速恢复并成为安全的投资天堂。但是政府固守防疫政策严重影响商业发展,并加剧其他社会问题。对国有企业的支持、商业政治化日益加剧等问题逐步降低中国的投资吸引力。企业认为中国市场的可预测性、可靠性和效率逐步降低。随着地缘政治紧张局势加剧,未来发展难以预测。

        这从欧洲对华直接投资可见一斑。过去四年,欧洲对华主要直接投资仅来自少数大型企业。其余企业持观望态度,他们维持在华业务现状,积极考虑其它更为稳定的投资选择。

        中国欧盟商会坚信,全面实行市场改革是发挥中国经济潜力、迅速重建投资者信心的最有效措施。由此,为决策者提供政治空间“试错”、探讨想法并最终重归正轨至关重要。这种决策机制曾一度是中国政策制定的特色流程。

        尽管欧盟企业在中国面临巨大困难,但是仍愿与中国风雨同舟,共同改善商业环境。这在《建议书》中提到的967项建设性建议可见一斑。该《建议书》由35个工作组和子工作组历时九个月编撰而成,是中国欧盟商会最重要的刊物和年度工作计划的基石。

        中国欧盟商会主席伍德克表示:“欧洲企业仍愿为中国经济发展作贡献,但由于中国国门紧闭,欧洲企业难以预测日益复杂的政治、经济和声誉风险,暂无计划增加投资。同时,为将在华业务对标企业承诺以及欧盟和美国的新供应链立法,企业强烈呼吁商业环境透明化。”

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