German firms warn Chinese Communist Party’s drive to gain more control over business operations may drive them away
Diplomats and business leaders warn that push to establish party control over economic matters could force them to think about pulling out of the country
German businesses and diplomats have raised concerns about the Communist Party’s attempt to strengthen its influence in foreign enterprise, warning on Friday that it may force them to consider retreating from China’s market.
The practice of embedding party groups within foreign firms in China dates back to the 1990s, but the issue has become more of a problem as the party aims to strengthen its role in every aspect of society and economy.
The German Chamber of Commerce in China told a press conference on Friday to release its annual business confidence survey that companies were concerned that the requirement to have the party members involved in company management would affect business operations.
Lothar Herrmann, the chamber’s chairman in charge of North China operations, said that while it was acceptable to set up party cells in foreign firms, they should not be required to include party members in executive role.
The German ambassador Michael Clauss told the press conference that some German companies were under pressure to revise the terms of their joint ventures with Chinese partners, to allow the party cells to have a larger voice in business operations.