International Development News
Development News Edition

Time running out for China to continue its reform process says European business lobby

But the chamber's survey also showed European firms increasingly viewed their Chinese competitors as challengers to their business.

Time running out for China to continue its reform process says European business lobby
But the chamber's survey also showed European firms increasingly viewed their Chinese competitors as challengers to their business. (Image Credit: Twitter)

Time is running out for Beijing to fulfill its reform promises if it hopes to maintain stable growth, a top European business lobby said on Wednesday, contending that the roots of US.-China trade tensions began in China.

Despite the Chinese government's repeated pledges to further open its economy, 46 percent of respondents in the European Union Chamber of Commerce in China's annual business survey said they thought the number of regulatory obstacles they face in China would increase over the next five years.

European Chamber President Mats Harborn said at a briefing on the group's survey that 2018 had to be the year when Beijing delivered on its promises, and that it should make serious commitments to defuse trade tensions.

"We believe also that time is running out for China to continue its reform process," Harborn said. "The reforms are needed for China to maintain stable and sustainable growth."

Surprisingly soft activity data for May showed China's economy is finally starting to cool under the weight of a multi-year crackdown on riskier lending that is pushing up borrowing costs for companies and consumers.

U.S. President Donald Trump threatened on Monday to hit $200 billion of Chinese imports with 10 percent tariffs if Beijing retaliated against his previous announcement to target $50 billion in Chinese imports.

The United States has alleged that China is stealing U.S. intellectual property, a charge denied by Beijing.

Beijing has accused the United States of "extreme pressure and blackmailing" and vowed to retaliate, the rhetoric from both sides raising the risks of a damaging trade war.

"Let's make no mistake that the root cause of the problem started here in China," Harborn said, referring to Chinese industrial policies that foreign businesses have long decried as discriminatory. Harborn added that the chamber did not support the use of tariffs to resolve such disputes.

Reciprocal market access remains a particular concern, according to the survey, with 100 percent of firms in the information technology and telecommunications sector reporting Chinese companies enjoyed better access in Europe than European companies had in China.

Sixty-two percent of companies in all industries said they had less favourable market access in China than their Chinese competitors had in Europe.

Chinese President Xi Jinping has repeatedly vowed to widen market access for foreign investors and cut foreign ownership caps in certain industries, as Beijing tries to position itself as champion of global trade in the face of what it calls U.S. protectionism.

Western governments, which share Washington's concern about Chinese trade abuses if not Trump's threat of hefty tariffs against China, have urged Chinese officials to match their anti-protectionist talk with action.

Foreign business groups say the changes have been too little, too late.

But the chamber's survey also showed European firms increasingly viewed their Chinese competitors as challengers to their business.

Sixty-one percent of respondents said domestic Chinese firms were already equally or more innovative than European enterprises for various reasons, including increased R&D spending and targeted acquisitions of foreign high tech firms.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



No lessons learnt, Delhi again facing haze and hazardous Air pollution

While the parliamentarians in the Rajya Sabha Upper House were engaged in allegations and counter allegations on Thursday, the pollution was rising outside which soon took the form of a haze....

How to turn the aging population productive, ADB shows the path

Mature and older workers are not necessarily unproductive, and they may perform continuously well in certain types of work, but their productivity in others may naturally decline. In addition, the scarcity of young-to-middle-aged workers co...

How music can help expectant mothers during pregnancy

Music provides pleasant ambience for all but its more important for expectant mothers as besides ensuring pleasant environment for them it also directly and indirectly influences the unborn babies. There are various scientific findings to c...

EdTech: A technical approach to flexible and cost-effective education

Its hight time for the world to go for innovative approaches like e-learning over traditional learning methods that need physical infrastructure, long-term planning, and huge investment. ...


Latest News

Steelers WR Smith-Schuster ruled out vs. Bengals

Pittsburgh Steelers wide receiver JuJu Smith-Schuster will not play in Sundays game against the Cincinnati Bengals after sustaining a concussion in last Thursdays contest against the Cleveland Browns. The third-year wide receiver, who turne...

UPDATE 2-Athletics-Russia reinstatement process suspended over AIU charges

The global governing body of athletics on Friday suspended the reinstatement process for Russia pending the resolution of charges imposed on its athletics federation for violating anti-doping rules, dealing a blow to the countrys Olympic ho...

UPDATE 2-UK Labour leader Corbyn: I would stay neutral in a second Brexit referendum

The leader of Britains opposition Labour Party, Jeremy Corbyn, said on Friday he would remain neutral in any second Brexit referendum, so he could credibly carry out the result of the vote and unite the country.Corbyn is vying to become pri...

UPDATE 1-Pennsylvania court sustains prison sentence of child sex abuser Jerry Sandusky

A Pennsylvania judge on Friday sustained the 30-to-60-year prison sentence that former Penn State football coach Jerry Sandusky received after his 2012 conviction for sexually assaulting teenage boys. Visiting Judge Maureen Skerda resentenc...

Give Feedback