In an earlier posting I reported on the EUCCC Press Conference. I found the following article by Gary Bowerman, dated 15 September 2007. It gives a good overview, taking over the comments from the EUCCC.
Published in : The News, News September 2007. Source: www.bizchinaupdate.com
European firms are facing a toughening business environment in China, according to Joerg Wuttke, President of the European Chamber of Commerce in China.
Launching the EU Chamber’s 2007 European Business in China Position Paper, Wuttke said: “The investment climate is becoming more complex and challenging for foreign businesses operating in China,” adding that “companies in some sectors face new or increased requirements in areas such as technology transfer.” In addition, the transfer of technology mandated by Beijing, “threatens the core of European business … if you let go your entire technology,” he said.
Wuttke also highlighted the finance and telecoms sectors, where domestic competitors still enjoy state-protected competitive advantages. “We are seeking a non-discriminatory investment climate,” he added. “We seek fair and impartial treatment.”
The 2007 EU Paper identifies technical barriers to trade and investment, such as: “homegrown standards, the lack of adoption of international standards and arduous approval procedures”.
Below are the published highlights of the 2007 EU Chamber Position Paper:
Recent Positive Developments

• Two-way trade between EU and China has grown by 21.6% in 2006, exceeding EUR 250 billion.
• Large scale economic reforms in most sectors.
• Continued European investment into China, over EUR 3.7 billion in 2006.
• Improved consultation in the drafting of certain legislation such as the Labour Contract Law, the Property Law and the ongoing work on the Patent Law and Energy Law.
• Promulgation of new legislation, including China’s first Anti-Monopoly Law.
• Opening up of the banking sector to foreign participation; reduction of capital requirements.
• Intensified efforts on energy saving and emission reduction, and the publication of the national action plan on Climate Change.
• The introduction of National Phase III emission standards (similar to Euro III) for new vehicles nationwide.

Challenges

• Emerging trend within some regulatory bodies towards unequal treatment of foreign companies through protectionist measures.
• Continued lack of effective deterrence against IPR infringements.
• Need for greater consistency, implementation and enforcement of laws and regulations, particularly at the local level.
• Continued limitations on investment in certain industries such as automotive, telecoms, petrochemicals, and energy.
• Technical barriers to trade and investment in the form of home-grown standards, the lack of adoption of international standards and arduous type approval procedures.
• Sufficient time should be granted between the promulgation and the effective date of laws and regulations.
• Forced technology transfer for participation in certain sectors.
• Lack of independent regulators in certain sectors, which results in the lack of effective, transparent and independent decision-making.
• Distortions in energy prices that discourage energy saving and greater dissemination of advanced environmentally friendly technologies.