A new report by the European Union Chamber of Commerce in China highlights the increased risks faced by foreign businesses in the country due to uncertainty and stringent regulations. The report emphasizes the need for China’s leaders to address concerns that have escalated in recent years. The study, compiled in collaboration with the China Macro Group consultancy, echoes similar worries expressed by European and American companies operating in China.
While China has promoted its openness to foreign companies and investment, actions such as raids on foreign businesses, unclear state secrets laws, and strict data handling rules have raised concerns among foreign business people. The report also highlights challenges faced by European companies in accessing government procurement contracts and navigating data security regulations. Businesses in the pharmaceutical and medical equipment sectors are particularly affected.
The report also discusses the impact of China’s focus on national security and the implications for technology reliance. The ongoing trade tensions with the U.S., coupled with the disruptions caused by the COVID-19 pandemic, have added to the challenges faced by foreign businesses in China. European Chamber officials stress the importance of restoring predictability to the regulatory environment and finding common ground to work together on these issues.
Overall, the report calls for improved dialogue and collaboration between China, Europe, and other foreign partners to address the risks and uncertainties associated with doing business in China. The goal is to create a more stable and predictable environment for foreign businesses and investors in the country.
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