Slow pace of Chinese economic reform could push EU into taking tougher stance
- The two sides are still committed to reaching an investment agreement by the end of the year but concerns about market access and the state sector remain
- China’s ambassador to the EU has said the two sides are looking for a ‘potential landing zone’
China’s slow progress in opening its markets to foreign firms and reforming state companies may force the European Union to adopt a tougher competition policy to address market distortions, diplomatic sources and observers have warned.
Beijing and Brussels held the 32nd round of negotiations on a China-EU investment deal last week, after a video summit earlier this month in which both sides reaffirmed their willingness to conclude the talks by the end of the year.
Zhang Ming, China’s envoy to the EU, said earlier this week that the two sides have made significant progress on issues such as technology transfer, subsidies and state-owned enterprises, adding that they were trying “to find a potential landing zone” on market access and sustainable development.
China’s commerce ministry said in a brief statement on Friday that positive progress had been made on the remaining problems and the issue of market access without elaborating.
But a European diplomatic source said China could do more to open up and lower barriers in areas such as in transport, telecoms, energy, water treatment, tourism, postal services and other service sectors.