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China Closes Doors To European Businesses

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The report, from the European Union Chamber of Commerce in China, covers the whole gamut of the Chinese economy, from industrial chemicals to mobile phones to banking.

It paints a troubling picture of the Chinese business landscape, filled with discrimination against foreign companies, arbitrary laws and regulations, and abuses of China's World Trade Organisation obligations.

Although China has repeatedly complained about protectionism in the United States and Europe, the report suggests that China is one of the most protectionist major economies.

Joerg Wuttke, the president of the European Chamber, warned that "China needs Europe more than Europe needs China", and pointed out that the EU is a bigger market than the US for China, and exports to European countries make up 7pc of Chinese GDP.

According to the World Bank, China ranks 83rd out of 181 countries in its annual assessment of how easy it is to do business. The emerging superpower scored lower than Kenya, Vanuatu and Colombia, but was judged better than Sierra Leone and Belarus.

Now, however, the business climate is getting worse. Mr Wuttke said in many sectors there had been "a slowdown, and in some cases partial reversal, of the reforms of recent years".

He noted that there have been a rising number of government interventions and that foreign investment restrictions have also increased. The EU report contains over 500 recommendations on how China could improve the situation, drawn from the 1,400 European companies working in the country.

In particular, the report criticises China's joint-venture requirements, which means that foreign companies in some sectors can only own up to 50pc of a company.

In the car sector, Chinese companies are able to buy European car makers, but foreign manufacturers in China have to do joint-ventures to operate and are allowed a maximum of two plants.

Meanwhile, foreign companies have been repeatedly barred for bidding from government contracts, even though China pledged that its Pounds400 billion of stimulus cash would be allocated to both local and foreign firms. "Bids by four foreign-invested wind energy companies in Shanghai, Shandong and Tianjin for a Eu5 billion project for 25 sets of wind turbine generators were rejected in the first round," the report notes.

The European Chamber says foreign companies are "excluded outright" from China's service sector, and uses Amadeus, a Spanish travel-booking company, as an example. More than seven years since China signed up to the WTO, it has still not granted Amadeus, a computer travel reservation system, the right to issue tickets and reservations to the growing Chinese market.

Meanwhile, China's host of technical regulations and certification procedures "blatantly discriminate" against foreign companies, said Dr Wuttke. The report cites an unnamed company that was the market leader in providing encryption services to Chinese banking, telecoms and public transport firms until the government "suddenly" required a new certification from the Office of Security Commercial Code Administration (OSCCA). "Not one foreign company or foreign-invested Chinese company has to date received OSCCA certification," the report points out.

A trade war by stealth?

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Guest Parry aka GOD

Asia is brutally protectionist. How they've got away with it I don't know. Anyone who thinks the likes of the UK can trade their way out of this mess by selling to the East/Far East . . . forget it.

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That's it, I'm going to stop buying anything made in China as a protest.

Wait... :(

Edited by VoteWithYourFeet

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Indeed, the relative success of China in comparison with India, from what would seem to be lower educational base would confirm what you say and suggest a more controlled economy may be more suitable for a developing nation with a large labour base.

Would you have any pictures to illustrate your point more fully?

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Asia is brutally protectionist. How they've got away with it I don't know. Anyone who thinks the likes of the UK can trade their way out of this mess by selling to the East/Far East . . . forget it.

I thought the answer has been obvious to everyone for the last 10 years?

They are CHEAP. Dirt cheap. They can make jeans, pots , pans, tat etc for 1/20th of the price of EU countries.

They don't have much of a safety net for workers. Or a NHS. But they are CHEAP.

And they make money for multinationals..................... :ph34r:

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Even India is worried about the cheap Chinese goods.


2009-09-01 15:40:00

Meanwhile, the organizers of the 2nd Annual China Sourcing Fair to be held in Mumbai said that more than 700 booths have been contracted to exhibit their products expanding the event’s size 100% compared to last year

India has a huge population and is a strong potential market for Chinese companies," said Mao Wanqing, Chairman of CCPIT Taizhou. "India has maintained high economic growth during the financial crisis. Since the financial crisis, all of the small and medium enterprises in China are looking for emerging markets. India is a very good opportunity for our Chinese manufacturers."

It remains to be seen how far governmental moves can counter dumping of Chinese goods in India especially when consumers seem to lap it up fast on account of its cheap price and ready availability across cities. However, government needs to act fact on its proposal to uplift Indian electronics and hardware industry so that it can effectively counter Chinese competition.


BEIJING, Aug. 31 (Xinhua) --

The Chinese Ministry of Commerce said Monday it would extend anti-dumping duties on phthalic anhydride imported from the Republic of Korea, Japan and India for another five years after review investigation.

Phthalic anhydride is an important industrial chemical mainly used in the mass production of plasticizers for plastics

On Jan. 7, China imposed anti-dumping measures on phthalic anhydride to offset negative impact on domestic producers.


08.14.09, 12:28 PM EDT

BRUSSELS, Aug 14 (Reuters) - The European Commission has opened an investigation into the alleged dumping of aluminium road wheels in the European market by Chinese manufacturers, the official journal of the EU said on Thursday.

The probe follows complaints from the Association of European Wheel Manufacturers (EUWA) in June this year. The body alleged that imports of certain aluminium road wheels used in motor vehicles were being dumped in the EU market.

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so what we have to do now is convince russia that china have a very large army that are surplus to requirements who will happily sacrifice a few million of them to plunder russian oil and gas....to feed their new consumer habit.

I notice the russians are now getting a bit sweeter on eu/us passenger aircraft.

I suppose we could also get them to lay off supplying weaponry to rogue islamic states by telling them that they have a bit of a problem with chechnya,and frankly it would be doing the world a service getting rid of a couple of these antagonistic hellholes like afghanistan for good.

british,russians and now americans are finding to their cost trying to democratise a place like that is a bloody waste of time and money.Why prolong the agony?

plenty of room for trading!!.....I am not at all against the concept of a little more sharing between our eurasian neighbours.

russian/eastern european birds are quite hot!!

Edited by oracle

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I've been waiting for this.

The illuminati Global brotherhood transfered all the Western tech know-how over to the Chinese and got loads of Asian companies to do the same(under guise cheaper to produce/profits for the Western 'share'holders)

The Chinese Dragon then snaps round to bite once satiated!

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