EU firms warn China to play fair
China must not take the commitment of European companies for granted and needs to do more to ensure a level playing field for foreign business, the European Union Chamber of Commerce said on Tuesday.business Updated: Jun 29, 2010 23:12 IST
China must not take the commitment of European companies for granted and needs to do more to ensure a level playing field for foreign business, the European Union Chamber of Commerce said on Tuesday.
Corporations remain optimistic about China's growth prospects, but are wary about the near-term outlook for profits and are very concerned about regulatory uncertainty, according to the chamber's annual confidence survey.
Out of more than 400 respondents, 68 per cent said they expected China to be a top-3 destination for their company in five years, up from 64 per cent today, and almost half planned to make big new investments over the next two years.
"This massive commitment to the Chinese market is not unconditional. If perceived risks materialise to a great extent, the presence and commitment of our members may disappear," chamber president Jacques de Boisseson said.
He said the group was not setting conditions and had been reassured by a meeting in April with Chinese Premier Wen Jiabao, who promised foreign firms would not face discrimination.
Forty percent of respondents thought that the application of government policies would be even less fair for foreign companies in two years' time, the survey showed.
"We don't want to have to vote with our feet to be heard by the Chinese government," de Boisseson said.
First Published: Jun 29, 2010 23:10 IST