European Business Group Urges China to Reprioritize Economic Growth

A European business group has urged China to focus on economic growth and reforms to boost investor confidence. The group called for a level playing field for all companies, citing low business confidence and overcapacity in certain industries. The group recommended policies to enhance domestic demand.

A European business group has called on China to reprioritize economic growth and reforms, emphasizing the need to boost investor confidence by creating a level playing field for all companies operating in the country.

The group noted that business confidence in China is at an all-time low due to lagging domestic demand and overcapacity in certain industries. The annual European Business in China Position Paper urged the Chinese government to open its economy further and allow market forces to determine resource allocation, alongside policies to stimulate domestic demand.

Published by the European Chamber of Commerce in China, the paper also highlighted that profit margins for two-thirds of surveyed companies are at or below the global average. Moreover, recent trade disputes, such as China's complaint to the World Trade Organisation regarding EU tariffs on Chinese electric vehicles and investigations into European products, have raised concerns about a potential trade war.

European businesses are increasingly weighing the risks of operating in China, according to the paper. Jens Eskelund, president of China's European Union Chamber of Commerce, stated that this trend will worsen unless key business concerns are addressed. The paper includes over 1,000 recommendations for China to tackle issues affecting European businesses, such as avoiding punitive actions against companies for their home governments' actions and ensuring investor-friendly policies are properly implemented.

(With inputs from agencies.)