TE24 Bangladesh Desk:
A major European industry group warned Wednesday that businesses were losing confidence in China and its status as an investment destination was undermining, saying it was “inflexible and inconsistently implemented”. He cited Covid policies as a major factor.
The European Chamber of Commerce issued a warning in a paper it said contained contributions from 1,800 member companies. The paper also contained 967 recommendations for China, the European Union, and European companies involved in doing business in the country.
For example, the report, which touched on trade issues with Taiwan, said China should refrain from “unpredictable political changes”, deepen cooperation with the European Union and increase international flights.
The European Union should actively engage with China and reject calls to leave, she added.
Chamber of Commerce president Jörg Wuttke said at a press conference that there had been a “clear contrast” between China and the rest of the world over the past year. “The world lives in herd immunity and China is waiting for the world to eliminate Omicron, which of course is unlikely.”
China says its policies are necessary to prevent its health system from being overwhelmed and an unacceptable loss of life.
The chamber said that in addition to Covid, a slowdown in reforms by China’s state-owned enterprises, an exodus of Europeans from China, restrictions on overseas travel by Chinese personnel, and an increase in the politicization of the economy are also making China attractive. Said it was damaged.
A record number of companies have attempted to shift their current or planned investments to other markets, according to the report.
Last month, the U.S. business lobby said China’s stringent Covid-control measures had overtaken the deterioration of U.S.-China relations and was the number one concern for U.S. businesses at home.
China is one of the few countries where travelers are required to quarantine upon arrival, with the ruling Communist Party’s five-year congressional easing beginning Oct. 16, the chamber of commerce said.
Xi Jinping is expected to enter his historic third term in office, but it is still unclear who will join him on the Politburo Standing Committee and who will succeed Premier Li Keqiang, who is set to step down in March. is not. The responsibility is that the government is the second largest economy in the world.
Utke said Vice Premier Liu He, who is set to step down from his current post, has always supported reforms and is “difficult to replace.”
“We need to see the line-up in economic decision-making and that could give clues as to where this country is headed,” he said.
