China’s commerce ministry has condemned the EU’s « naked protectionism » (File)
Beijing:
The EU’s trade chief told Beijing on Monday that tough security laws and a more « politicised » business environment have left European companies struggling to understand their obligations and questioning their future in China.
China’s refusal to condemn ally Russia for its war in Ukraine also poses a « reputational risk » for the world’s second-largest economy, Trade Commissioner Valdis Dombrovskis said in a speech at Beijing’s Tsinghua University.
He said transparency and openness were « a winning strategy in the long run », at a time when trade tensions between the European bloc and China are mounting.
« China is navigating a challenging transition from an investment-led economy to a broad-based economy, » he said.
« For this it needs to remain open. »
Dombrovskis’s four-day trip, which kicked off Saturday, follows a report by the EU Chamber of Commerce that showed business confidence was at one of its lowest levels in years.
It also follows Brussels’ decision to launch a probe into Beijing’s electric car subsidies.
The investigation could see the EU try to protect European carmakers by imposing punitive tariffs on vehicles it believes are unfairly sold at a lower price.
China’s commerce ministry has condemned the EU’s « naked protectionism », and said the measures « will have a negative impact on China-EU economic and trade relations ».
On Monday, Dombrovskis insisted China remained an attractive investment opportunity for European businesses.
« The EU and China both benefited immensely from being open to the world, » he said, adding that « European companies still want to invest here — but only if the conditions are right. »
From ‘win-win’ to ‘lose-lose’
Growing challenges for European business in China mean that « what many saw as a ‘win-win’ relationship in past decades could become a ‘lose-lose’ dynamic in the coming years », the commissioner said.
A new foreign relations law aimed, in part, at combating foreign sanctions and a recent update to China’s tough anti-espionage regulations are of « great concern to our business community », Dombrovskis said.
« Their ambiguity allows too much room for interpretation, » he warned.
« This means European companies struggle to understand their compliance obligations: a factor that significantly decreases business confidence and deters new investments in China. »
He also criticised China’s refusal to condemn Russia’s war in Ukraine, which he said « is affecting the country’s image, not only with European consumers, but also businesses ».
China has sought to position itself as a neutral party in the Ukraine conflict, while offering Moscow a vital diplomatic and financial lifeline as its international isolation deepens.
Chinese President Xi Jinping visited Moscow in March, while Russian leader Vladimir Putin is due to visit China next month.
« Territorial integrity has always been a key principle for China in international diplomacy. Russia’s war is a blatant breach of this principle, » Dombrovskis said.
« So it’s very difficult for us to understand China’s stance on Russia’s war against Ukraine, as it breaches China’s own fundamental principles. »
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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