European firms in China call for level playing field

(BEIJING) - European companies in China on Thursday called for greater market access and a level playing field with Chinese rivals amid growing frustration among foreign firms over perceived unfair treatment.

A European Union Chamber of Commerce position paper said uneven enforcement of laws and unfair restrictions on foreign investment were deterring overseas companies from expanding their operations in China.

"This is not because European companies do not want to expand their China operations... but rather because they face obstacles or risks in excess of what their boards and stakeholders will allow them to bear," said Jacques de Boisseson, president of the business group.

The position paper was the latest in a growing chorus of complaints from overseas companies that China's business environment was worsening.

It called on Beijing to consult more with foreign companies on policy decisions and urged the European Union to develop a common China policy.

"A single market needs a single and proactive economic and trade policy towards China," Boisseson said.

Despite repeated assurances from top leaders that foreign investment was welcome in China, there was a "growing tendency" in sectors such as auto, telecoms and healthcare to block overseas companies from the market.

These hurdles were prompting some European companies to reconsider their presence in China, Boisseson said.

"There are sectors of the Chinese economy... that would probably be satisfied with a lower level of foreign investment," he said.

Beijing last month urged officials to implement policies aimed at encouraging foreign investment, in an apparent response to the criticism by foreign governments and firms over perceived unfair policies and market restrictions.

Surveys by the American and European chambers of commerce in recent months showed overseas companies are increasingly unhappy with the way they are treated in China.