European Union Trade Commissioner Valdis Dombrovskis confirmed Monday in Beijing that “European companies are concerned about the direction China is taking,” stressing that China’s refusal to condemn the Russian war on Ukraine “harms its image.”
The European official is visiting Beijing within the framework of the economic and trade dialogue between China and the European Union. On Monday morning, Dombrovskis met with students at the prestigious Tsinghua University.
The European Commissioner said that “European companies are concerned about the direction China is taking,” and “many of them are wondering about their situation in this country,” amid “an increasingly politicized trade environment.” He added, “This was demonstrated by declining transparency, unequal access to government contracts, and discrimination in terms of standards and requirements in the security field, in addition to requirements in the field of data localization and transfer.”
“The lack of reciprocity and equality of opportunity on the part of China, coupled with broader geopolitical shifts, have all forced the European Union to become more assertive,” Dombrovskis said.
For its part, the Chinese Foreign Ministry said on Monday that China will continue to provide opportunities for all companies from all countries to operate legally in China in a legal and market-oriented business environment, in response to Dombrovskis’ comment about China’s business environment lacking equal opportunities.
The European Commissioner touched on the national security laws recently passed by China. He said, “The new Foreign Relations Law and the new version of the Counter-Espionage Law raise great concern in our business community.” Because “their ambiguity leaves much room for interpretation.”
The European Union Chamber of Commerce’s latest annual report also came to worrying conclusions, noting that European companies in China face an “increasingly uncertain” business climate in which the “ambiguity” of regulatory rules exposes them to more “risks.”
This atmosphere prompted 11 percent of European companies surveyed to transfer their current investments outside China, according to the European Union Chamber of Commerce.
During a visit to Beijing last week, European Commission Vice President Vera Jourova called for more “clarity” in the formulation of Chinese laws.
The intensification of contacts between Brussels and Beijing comes at a time when the European Union appears to be raising its voice regarding Chinese trade practices, which European Commission President Ursula von der Leyen condemned and described as “unfair.”
On September 13, von der Leyen announced in a speech she delivered before the European Parliament in Strasbourg the opening of an investigation into Chinese support for electric cars. China did not delay in responding, considering that the measure was “nothing more than a protectionist measure” that would have a “negative impact on economic relations.”
On Monday, Commissioner Dombrovskis confirmed that China remains attractive for investments by European companies. He said: “Both the European Union and China have benefited greatly from their openness to the world… so I will continue to defend openness as a winning strategy in the long term.”
“But companies are wondering whether what many saw as a win-win relationship in recent decades could become a lose-lose dynamic in the coming years,” he added.
The European Commissioner also warned that China’s refusal to condemn the Russian war on Ukraine “harms the image” of Beijing. The commissioner said that “there is a risk regarding China’s reputation,” and he believes that this position “harms the country’s image not only among European consumers but also among companies.”
He added, “Territorial integrity has always been a fundamental principle for China in international diplomacy,” and “China has always called for the need for every country to be free to choose its own development path.” He continued, “So it is very difficult for us to understand China’s position on Russia’s war against Ukraine, because it violates China’s basic principles.”
China and Russia are strategic allies, and often praise their “unlimited” partnership and economic and military cooperation. They have grown closer since the war in Ukraine began in February 2022.
The Kremlin has been seeking to strengthen its relations with Beijing since the start of its military attack, which isolated Moscow from the international arena. For its part, China has sought to present itself as a neutral party in the Ukrainian conflict, while at the same time providing Moscow with vital diplomatic and financial assistance.
Chinese President Xi Jinping visited Russia last March, while his counterpart Vladimir Putin is expected to visit China next October.
2023-09-25 14:18:27
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