European companies welcome preferential policies

European companies welcome preferential policies

European companies have profited from China's efforts to boost foreign investment, the president of the European Union Chamber of Commerce in China said on Friday, adding that economic security concerns should not be obstacles to win-win cooperation between the EU and China.

At a conference in Beijing organized by the General Office of the National Committee of the Chinese People's Political Consultative Conference, Jens Eskelund said: "The trade relationship between China and the European Union has created enormous value … but we must accept that both sides have reasonable economic security concerns. We should not let these concerns obstruct the otherwise productive relationship."

The conference brought together representatives from multinational corporations and international business associations in China.

Eskelund said European companies have taken encouragement from preferential policies issued by the General Office of the State Council.

They include a 24-point action plan to promote high-level opening-up and make greater efforts to attract and utilize foreign investment, which was published last month, as well as a 24-point guideline unveiled in August designed to optimize and attract foreign investment.

Eskelund said that if the measures are implemented in a timely and consistent manner, they "will go a long way to improve and enhance business profit".

He said measures such as shortening the negative list, expanding market access in more sectors, integrating foreign-invested enterprises in government procurement activities, and promoting the safe, orderly, and free flow of data, can boost investor confidence.

In addition, measures such as a four-year extension of foreign nationals' nontaxable income, adding routes by international airlines, and facilitating the entry, exit and residency of foreign executives, technical personnel and their families, are conducive to offering appealing employment conditions for vital foreign talent amid intense global competition, Eskelund said.

But there were concerns in Europe about the growing imbalance in trade, he said, and many European companies were concerned they could be priced out of their home market.

Eskelund said that there should be no such fear in the process of international business cooperation, and such thoughts should not hinder the deepening of cooperation.

"The Ministry of Commerce has helpfully explained that China's self-reliance will also do good to foreign companies," he said. "Self-reliance means that China will aim at ensuring a certain capability for the survival of domestic companies, while at the same time allowing space for foreign companies."

He said the new quality productive forces proposed by China are "a natural next step in China's development path toward higher value-added industries" and "part of the things that happen in terms of technological development globally".

"I think there's no doubt that China has emerged as a leader within green technologies," he said. "China would be an indispensable part of ensuring that the world will develop and hopefully try to minimize the risk of man-made climate change."

Justin Yifu Lin, deputy director of the CPPCC's Economic Committee, said that while market expansion remains crucial for all nations, there are pessimistic views regarding China due to factors such as an aging population and the so-called balance sheet recession.

"Such China collapse hypotheses have been repeated many times," Lin said, adding that such conjecture was groundless and China's economy will continue to thrive.

Lin said the key to growth lies not in the quantity of workers, but in their quality, an area where China continues to see improvement.

He added that the country is committed to bolstering its opening-up policy to attract foreign investment and is also eager to invest in foreign countries, leveraging technological innovation and industrial upgrading to enhance global economic growth.

Susanne Rademacher, head of the German Chamber of Commerce in China, said German companies want to deepen cooperation with China in industries like renewable energy and electric vehicles, given their cost-effectiveness and their contribution to facilitating green transition.

John Zhang, senior vice-president of Corning, a leading manufacturer of glass, fiber optics and ceramics that is headquartered in the United States, said it entered the Chinese market in the 1980s and has continued to deepen collaboration with local industry.

"The government is committed to creating a first-class business environment that is market-oriented, law-based and global," he said. "Our company has witnessed and experienced firsthand the benefit of government initiatives. We have confidence in the future development of our business as China continues to grow."