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2005-09-04 | All chapters

EU Firms Optimistic on China, Hail WTO Steps
Reuters, 4th September 2005

China has done a good job implementing the commitments it made when it joined the World Trade Organisation, according to a survey of European firms released on Sunday. Reuters reported.

A poll of firms taken for the European Union Chamber of Commerce's annual position paper found 86 percent of respondents optimistic about business prospects in China, little changed from last year's figure of 90 percent; 61 percent expected to be profitable or very profitable this year, against 64 percent in 2004.

"Chamber members remain positive about conducting business in China," Serge Janssens de Varebeke, the president of the chamber and the chief representative in China of Fortis Bank, told a news conference.

European businesses also gave China high marks for keeping the promises it made upon joining the WTO in 2001.

"In general China has been implementing its WTO commitments on time, and in some instances even ahead of time," de Varebeke said.

He said the basic challenge now was to shift from a strict interpretation of accession requirements to the practical reality of implementing and enforcing commitments.

The report listed an array of concerns in areas from intellectual property rights to financial services. Foreign banks, for instance, face higher capital requirements than Chinese banks.

The report also listed information technology and telecommunications as an industry where different standards are perceived by European business as a non-tariff barrier.

"China-specific regulations inflict additional costs and delay the introduction of new products. Moreover, the Chinese government shows a tendency to disregard open standards patents and will not allow Chinese companies to participate in licensing negotiations," the report said.

European Commission President Jose Manuel Barroso said he would press for greater access to the Chinese market for EU companies during talks on Monday with President Hu Jintao and Premier Wen Jiabao.