European firms in China have to negotiate a ‘political minefield’, trade group says
- Companies fear retaliation from Beijing over its political disputes with their home governments, European Union Chamber of Commerce says in annual position paper
- China should ‘depoliticise the business environment’, it says
Foreign companies in China are having to negotiate a “political minefield” as a result of Beijing’s strained relations with Brussels and Washington, a leading European business association said on Thursday.
There was a risk of a long-term, downward spiral in relations between China and Europe, which “have the potential to seriously impact European companies”, it said.
“Companies are left navigating a political minefield during a health crisis of truly overwhelming proportions, and this situation is becoming more precarious, with the previously isolated voices that were intent on sowing political discontent slowly building into a chorus,” it said.
“All of a sudden, we find ourselves not just in a delicate situation in Beijing, as usual, but also now we have a delicate situation on the home front where parliamentarians, public opinion, governments, NGOs are questioning us why we are operating in a country that does A, B, C, D,” Joerg Wuttke, the chamber’s president, said.
He said that although “everyone does their homework to make sure there is no forced labour” in Xinjiang, there was now “no more appetite to invest in new projects [there] … because it’s politically toxic”.