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2009-09-08 | Beijing, Shanghai, Southwest China, Nanjing, Shenyang, Tianjin, South China

EU Ashton Urges China Not To Curtail FDI Into China
Terence Poon, Dow Jones Newswires, 8th September 2009

BEIJING (Dow Jones)--European Union Trade Commissioner Catherine Ashton on Tuesday urged China not to curtail foreign direct investment into the country through equity caps and joint-venture requirements.

In the text of a speech delivered in Xiamen, southern China, Ashton described drops in bilateral investment last year as "warning signs" in Sino-E.U. investment ties.

"Foreign direct investment shouldn't be curtailed by equity caps, unnecessary joint-venture obligations or restrictions in sectors considered strategic," she said at an investment fair in Xiamen.

She also said concerns about the protection of intellectual property rights sometimes gives European companies pause in making investments in China.

The E.U. Chamber of Commerce in China said last week that operating conditions for European companies in the country had become increasingly challenging, and called for an end to restrictions on foreign investment and government intervention in industry.

It said barriers, such as forced joint ventures and ownership caps, are making China less and less appealing as an investment destination for European companies.

Source: http://online.wsj.com/article/BT-CO-20090908-703203.html