China needs more transparency in antitrust probes, says German envoy

If China wants to attract more foreign investment, it must make its antitrust investigations more transparent and abide more closely to the rule of law, says Germany's ambassador to China, Michael Clauss.

Clauss made the assessment on Tuesday as Premier Li Keqiang started his latest European tour amid rising concern that China's investigations into monopolies mainly target foreign companies.

Li will co-chair a German-Chinese government summit today in Berlin, and then go to Russia. He will wrap up his tour next Thursday after attending the Asia-Europe Meeting summit in Milan, Italy.

Clauss said Li would also have talks with German Chancellor Angela Merkel. The discussions would touch on the rule of law to promote justice and protect the interests of foreign companies, which are coming under greater antitrust scrutiny.

Last month a Chinese venture of Volkswagen AG and the China sales unit of Fiat's Chrysler were fined US$46 million for pricefixing.

Although Li insists that antitrust investigations also target Chinese companies, Clauss said media reports suggested that foreign companies were the targets. The European Union Chamber of Commerce in China has also complained that foreign firms appear to be unfairly treated.

Clauss said it was legitimate for China to enact anti-monopoly laws, but "the matter is how these laws are being implemented". Also unclear, he said, was whether investigated companies were allowed to take the matter to court, and the responsibilities of the three government agencies involved - the Ministry of Commerce, the National Development and Reform Commission and the State Administration for Industry and Commerce.