European firms want 'level playing field' in China Go back »

2009-09-11 | Beijing, Shanghai, Southwest China, Nanjing, Shenyang, Tianjin, South China

European firms want 'level playing field' in China
AFP, 11th September 2009

BEIJING — European Union trade commissioner Catherine Ashton said Thursday that foreign companies operating in China did not expect "red carpet treatment" but wanted a level playing field.

"The perception of European businesses ... has been that they would not be welcome in tendering for business in China," Ashton told a news conference.

"European businesses do not expect red carpet treatment in China but we need to make sure they don't get the rug pulled from under their feet at the same time."

Ashton said she had been given assurances by senior government officials during her first visit to China that European businesses operating here "would be regarded as Chinese businesses".

But she said it remained unclear how the government would ensure such treatment at the local level.

"We have to clarify exactly what is being proposed ... and communicate with businesses on what it actually means and make sure that those who are going to implement it know what it means," she said.

Ashton's comments came after a leading European business group last week said China was backtracking on the implementation of reforms aimed at opening up the world's third largest economy to foreign firms.

The European Union Chamber of Commerce in China said in a position paper that conditions for European companies operating here had become increasingly challenging.

"In many sectors there is a slowdown, even a partial reversal, of reforms," said chamber president Joerg Wuttke.

The group pointed out that foreign companies wishing to operate in China continued to face major barriers, such as the need for auto companies to create joint ventures with local firms.

Ashton acknowledged the friction between Europe and China, but said "99 per cent of our trade with China works effectively".

"We have very clear rules in the EU about anti-dumping and my responsibility is to make sure that we stick to those rules and that's what I do," Ashton said.

"I would like to avoid needing to use those rules and we need to continue to develop this partnership strategically in order to trade 100 percent in the right way," Ashton said.

While Europe and China are major trade partners, friction has been increasing with Europe opening four anti-dumping cases against Chinese industries this year.

Europe has anti-dumping measures in force against 50 -- or about one percent -- of Chinese imports to Europe, according to the EU website.

Source: http://www.google.com/hostednews/afp/article/ALeqM5jSR4dw6RI2_r4lgEKK6au3UnZMfw