European Business bored with China
In a report earlier this month, the European Chamber of Commerce (EuroCham) in China, said European companies are facing business environment unattractive, so profits go to government priorities and business local industry. More than half of European businesses surveyed said “golden era” in China was over.
The company has lost a member of EuroCham 21.3 billion euros ($ 29 billion) revenue in 2013 due to policy barriers to entering the Chinese market. “The multinational company started pessimistic about the future and wondering if the best period has ended or not,” the report said.
November last year, China announced plans ambitious reform. In particular, it will shift the economy to balanced growth, slower and more sustainable.
However, the expected growth of the European companies are at the lowest level since the peak of the financial crisis. Although optimistic about the policies by the Chinese government pledged to reduce interference in the economy, companies are skeptical about the process of real reform. About half said they did not believe China will actually implement these measures in the next 2 years.
The two biggest challenges for companies is the economic downturn and rising labor costs. “Two-thirds of large companies said the business environment in China has become increasingly complex and difficult. Besides, more and more businesses owned company is considered the main rival”, President EuroCham in China – said Joerg Wuttke said.
Leaders from foreign companies often complain about market access and many other challenges in China. However, they often have to go through the Chamber of Commerce to express their opinions, for fear of persecution.
The company said they are often discriminated against unreasonable tender offer products and services for the Government, or to make concessions on intellectual property in exchange for the right to join a number of areas.
China and the European Union are negotiating a bilateral trade agreement. However, Europeans said they would not be interested in this deal if it ignores the measures aimed at opening up some areas has long been restricted to foreign investors.