China needs to change, European firms say – but many doubt it will
- Forced technology transfer affects fifth of European firms in China, poll finds – double that of 2017
- Tackling this and state firm reform while improving market access can resolve issues driving trade war, EU Chamber of Commerce in China says
China needs to reform its economy but there is scepticism among European companies that it will ever happen, an influential business lobby group said on Monday while calling on Beijing to speed up efforts to address the causes of the US-China trade war.
The trade dispute over the past year “has clearly taken a heavy toll” on business sentiment for European companies operating in China, the European Union Chamber of Commerce in China said as it published its Business Confidence Survey 2019.
“It is highly concerning that 63 per cent of respondents that have felt compelled to transfer technology said it happened within the last two years, and a quarter say the transfer is currently taking place,” the report said.
Chamber vice-president Charlotte Roule said the chamber did not endorse the trade war but “China needs to reform itself” to make the business environment fairer and more transparent.