German trade body warns firms may pull out of China over Communist Party pressure
Foreign businesses are worried about request to set up party cells in their companies, group says
A trade group has warned that members of the German business community in China are concerned about a request from the ruling Communist Party to set up cells in their companies – and some may even pull out of the market if the pressure continues.
In a statement released last week, the Delegations of German Industry and Commerce in China – which represents the Association of German Chambers of Industry and Commerce in China – said foreign businesses faced increasing challenges in the country as the party’s influence on their operations grew.
The body said it had received reports about attempts by the party to strengthen its influence on wholly foreign-owned German companies operating in China. There is no legal basis for such companies to promote the party.
“We do not believe that foreign-invested companies generally should be required to promote the development of any political party within company structures,” the statement said. “Should these attempts to influence foreign-invested companies continue, it cannot be ruled out that German companies might retreat from the Chinese market or reconsider investment strategies.”
The party has been trying to make inroads into foreign-funded companies since President Xi Jinping came to power and began pushing to increase its role in all aspects of life in China.