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2009-07-02 | All chapters

Govt refutes bias charges
Ding Qingfeng, China Daily, 2nd July 2009

China remains committed to create a fair and free environment for all businesses, a spokesperson from the Ministry of Commerce said yesterday.

"We regret if there is any misunderstanding by foreign businesses on the issue," said the spokesperson.

The ministry's remarks are in response to a survey released by the European Chamber of Commerce in China on Tuesday and complaints from its members.

According to the survey, "the lack of transparent policy making" was still a key concern for businesses operating in the country, although European businesses remain confident about the China market and a majority said they would increase their investments this year.

The Chinese government should strive to create a level-playing field for all companies, Joerg Wuttke, president of the European Chamber of Commerce in China, told China Daily.

Wuttke said: "Chinese companies can learn from full competition. At the same time the Chinese laobaixing (the ordinary people) can also get huge benefits (from this approach)."

The German created quite a stir recently for his remarks on China's 4-trillion-yuan economic stimulus package. "I did little, just talked to some foreign media persons, and then everyone knew that and began to discuss that," said Wuttke.

On May 27, during a press conference held by the European Chamber, Wuttke was asked by a Dow Jones reporter for his views on why European wind power equipment makers had failed to bid for a $5 billion power project. To which, Wuttke said: "The criteria are done in such a way that by definition will probably exclude foreigners from bidding."

Soon, both foreign and Chinese media began quoting him extensively on the remarks. More importantly, European leaders took note of the issue and called on the Chinese leadership for consultations on matters related to protectionism.

Premier Wen Jiabao had on June 25 assured German Chancellor Angela Merkel that China would never discriminate against foreign enterprises and products, and was with Germany in fighting protectionism.

On June 4, nine Chinese ministries jointly clarified their stance on the issue, saying there was no harm in buying domestic products, as the wind power project is part of government procurement, and not part of the 4-trillion-yuan stimulus package.

Wuttke refused to comment on the statement, but said, "the lack of transparent policies continues to concern European businesses in China. But I am still confident that the Chinese economy is dynamic and stronger than most of the other global economies," he said.

"I speak for the members, not for myself. I tend to have the guts to speak up. Not only do I speak for my organization, but I also speak up in support of China," said Wuttke, who joined the European chamber when it was established in China in 2000 and has been staying in China for over 20 years.

Chinese industry insiders, however, feel that encouraging the purchase of domestic products is "fair and reasonable". Li Renqi, vice-president of the China Machinery Industry Federation, said some existing measures were actually putting domestic enterprises in a "disadvantaged" position.

Last Friday, the Ministry of Commerce said on its website that China sticks to the principle of treating foreign and domestic products on equal terms when it comes to stimulus-financed projects, and foreign enterprises have already benefited from the package.

European engineering behemoth Siemens said recently it expects to bag orders for energy-efficient and environment-friendly technologies amounting to 20 billion yuan from China's economic stimulus package over three years.

"China is on track to reform itself, by increasing policymaking transparency and improving the rule of law," said Chen Gong, chief analyst, Anbound Group.

Source: http://www.chinadaily.com.cn/bizchina/2009-07/02/content_8345760.htm