EU businesses want reciprocity from China. (Photo : Getty Images)
European businesses are calling for reciprocity as more Chinese businesses enter Europe while tight regulations face foreign firms in China.
An annual report from the European Union Chamber of Commerce in China revealed the EU traders' dissatisfaction at how things are playing out in the business scene in the Middle Kingdom where foreign companies are having a difficult time staying afloat amid stern regulations.
According to the Wall Street Journal, the EU is expected to air its concerns on the unfair and "highly disappointing" economic reform in China during the upcoming G20 Leaders Summit on Sept. 4 and 5.
A Warning
"This could seriously damage China's ambitions to establish a vibrant market economy," warned Jorg Wuttke, the European Union Chamber President.
"Government has an important role to play in supporting basic research, but it simply should not be responsible for directing capital. Instead, private enterprises should be given room to determine where the future opportunities lie," Wuttke stated.
Frustration is clear among the ranks of European businesses as the Chinese are going on a buying spree of companies overseas while foreign firms have very limited access to the steadily growing consumer market in China.
"If there are more deals coming, and more deals that European companies would like to do but can't do in China, then people are going to look at this differently," the EU Chamber President added.
The WSJ revealed that Europe receives so many Chinese investments, 70 percent of which are from state-owned companies.
While they appreciate the money coming in, the EU wants a fair and reciprocal trade relationship with the Middle Kingdom to prevent European businesses from dying out.
"The increasing wave of Chinese investment into Europe, while European investment in China drops, highlights the lack of reciprocal market access," Wuttke added.
The G20 Summit
Prior to the release of the annual report, Wuttke expressed his fear about protectionist forces being unleashed in response to China's market barriers that impeded foreign investors from working freely.
"We worry that China might unleash protectionist forces, which none of us want to see," Fortune quoted him as saying.
In response, Beijing wishes to remain silent on issues like protectionism as it intends to discuss such matters during in upcoming G20 Summit to be held in Hangzhou, Zhejiang Province.
"If need be, we have soldiers that can repel attacks, and soil that can stanch floods,'" Ministry of Commerce spokesperson Shen Danyang said, citing a Chinese proverb that explains how China has theh tools to defend itself.
