European companies in China are worried about new national security laws and questioning their business in the country, EU Trade Commissioner Valdis Dombrovskis warned in Beijing on Monday.
Touring the Chinese capital for the China-EU Economic and Trade Dialogue, Dombrovskis was speaking to students at the prestigious Tsinghua University on Monday morning.
"European companies are worried about the direction China is taking," said the Commissioner. "Many of them are questioning their position in that country. They are wondering whether what many saw as a 'win-win' relationship in recent decades could become a 'lose-lose' dynamic in the years to come."
"The Chinese government has created a more politicised business environment by expanding its toolbox to protect national security and development," he noted.
The EU official voiced widespread concerns from Europe's industrial powers that what once had been a beneficial and constructive relationship with China has been undermined and leveraged to political ends. "This has resulted in less transparency, unequal access to public procurement, discrimination on security standards and requirements, as well as data localisation and transfer requirements."
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The Commissioner highlighted the national security laws recently approved in China: "The new Foreign Relations Law and the new version of the Anti-Spy Law are of great concern to our business community. Their ambiguity leaves too much room for interpretation."
The recent annual report of the European Union Chamber of Commerce also draws worrying conclusions, stating that European companies in China are facing an "increasingly ambiguous" business climate where "vague" regulations expose companies to more risks.
