On October 18, 2023, in Beijing, China, to commemorate the tenth anniversary of the “Belt and Road” initiative, before the opening ceremony of the “Belt and Road” Summit Forum, a Chinese flag flew on the roof of the Great Hall of the People.
Sue Edgar | Reuters
BEIJING – European companies in China are very frustrated with the prospect of doing business there and Beijing must take action if they want to invest further, the European Chamber of Commerce in China said.
Growth in China, the world’s second-largest economy, has slowed. Meanwhile, the China Chamber of Commerce said in its latest position paper released on Wednesday that China has yet to take significant action on years of promises to improve its business environment, leading to “promise fatigue.”
“We do believe that we are actually at some kind of tipping point… If you want to do something, now is the time,” chamber president Jens Eskelund told reporters ahead of the paper’s release. express.
Foreign direct investment in China fell by 29.6% The period from January to July compared with the same period last year, according to China’s Ministry of Commerce. It attributed the decline to a high base last year.
The ministry and other Chinese government agencies have been seeking to resolve some issues for foreign businesses, such as data transfer and obtaining travel visas.
Over the weekend, Chinese authorities announced that foreign companies would be able to Wholly owned hospital Human stem cell research and treatment are conducted in some cities and regions. The government also stated that it would Remove restrictions on foreign investment in manufacturing.
The changes are part of Beijing’s pledge to reduce its negative list, a series of industries that ban foreign companies from entering China. Critics say Beijing prefers to restrict foreign entities from operating in lucrative industries such as financial services until domestic companies get off the ground.
However, Eskelend said these developments, while encouraging, did not provide enough of a boost for European businesses, especially as members’ optimism about China’s profitability over the next two years is at an all-time low. Down.
“Given that market conditions don’t appear to be generating the same returns as they were pre-COVID, maybe you need to speed up things (red tape),” he said.
According to official targets, China’s economy is expected to grow by around 5% this year. However, retail sales increased by 2% year-on-year in June and 2.7% in July. Imports in US dollar terms in August grew only 0.5% year-on-year, indicating that domestic demand continues to be sluggish.
“In the long term, I don’t think anyone really questions China’s future potential and what China can do. That’s not what’s at stake here,” Eskelund said.
“We see amazing supply chains here, and we see long-term potential in China as a consumer market,” he said. “We just need to see some action that actually gives us confidence that this is something that’s happening within a certain time frame that makes it reasonable to actually invest.”
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