European economic groups warn of loss of confidence in China

TECHNOLOGY
featured image

Shanghai, China, July 11, 2022, as parts of the city undergo new lockdown measures to curb the outbreak of the novel coronavirus disease (COVID-19), barriers in an enclosed area A man looking out from behind. REUTERS/Aly Song

Register now for free, unlimited access to Reuters.com

SHANGHAI (Reuters) – Businesses are losing confidence in China and the country’s status as an investment destination is undermining, Europe’s top industry group warned on Thursday, calling it “inflexible and consistent.” He pointed out that the new coronavirus countermeasures, which are being implemented without sexuality, are an important factor.

The European Chamber of Commerce issued the warning in a paper that said it gathered input from its 1,800 member companies. The paper also contained 967 recommendations for Chinese, European Union and European companies related to doing business in China.

Touching on issues ranging from Taiwan to trade, the report said, for example, that China should refrain from “irregular policy shifts”, deepen cooperation with the European Union and increase international flights.

Register now for free, unlimited access to Reuters.com

He added that the European Union should actively engage with China and reject calls to leave.

At a media briefing, Jörg Wudtke, president of the Chamber of Commerce, said that while China continues to turn inward, while other countries remain committed to globalization, the relationship between China and other countries over the past year has increased. He said there was “a stark contrast” between them.

“The world lives on herd immunity and China is waiting until the world eliminates Omicron, which of course is unlikely.” Traveling abroad.

China says its policies are necessary to prevent the country’s health system from being overwhelmed and causing unacceptable loss of life.

In addition to COVID, the Chamber of Commerce said that in addition to COVID, the stalled reform of China’s state-owned enterprises, the exodus of Europeans from China, restrictions on overseas travel by Chinese staff, and the increasing politicization of business have also undermined China’s attractiveness. Said there was

A record number of companies are looking to shift their current or planned investments to other markets, according to the report.

Last month, the U.S. business lobby said China’s stringent COVID control measures had overtaken deteriorating U.S.-China relations as the top concern for U.S. businesses at home.Read more

China is one of the few countries that requires travelers to quarantine upon arrival, and Utke said restrictions will be eased after the ruling Communist Party’s five-year congress starting Oct. 16. The Chamber said it remains hopeful.

Xi Jinping is expected to secure a historic third term in office, but it is still unclear who will join the Politburo Standing Committee and who will replace Premier Li Keqiang, who is set to step down in March. not. Second largest economy in the world.

Utke said outgoing Vice Premier Liu He has always supported reforms and “would be difficult to find a successor.”

“We need to see the line-up of economic decisions, which may give us some indication of where this country is headed,” he said.

Register now for free, unlimited access to Reuters.com

Reporting by Josh Horwitz.Editing by Brenda Goe and Allison Williams

Our Standards: Thomson Reuters Trust Principles.

Tags