On 11th September, the Chamber published its European Business in China Position Paper 2024/2025. In this special edition, we have asked the panellists that attended the Position Paper launch to share their one key recommendation that, if acted on, would significantly improve the business environment for European firms in China. Speakers include European Chamber’s President Jens Eskelund, Vice President Stefan Bernhart, States’ Representative Peter Ling-Vannerus, and Board Member Ninette Dodoo.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.
Read more:
European Chamber report: European Business in China Position Paper 2024/2025
https://www.europeanchamber.com.cn/en/publications-position-paper
Transcript:
RUI: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
(MUSIC)
RUI: On 11th September, the Chamber published its European Business in China Position Paper 2024/2025. The report focusses on the urgent need for the Chinese authorities to follow through on reform pledges announced in the past year, with business confidence now at an all-time low.
MARIANN: For today’s special edition of the China ShortCuts podcast, we have asked the panellists that attended the Position Paper launch to share their one key recommendation that, if acted on, would significantly improve the business environment for European firms in China.
MARIANN: Chamber President Jens Eskelund highlighted the importance of the timely implementation of the Chinese Government’s existing pledges.
JENS: We believe the time for action is now, and one concrete step that the government could take would be to fully and across all dimensions implement the 24 measures that were announced on 13th August 2023. A full implementation in its entirety of these measures would significantly increase the confidence of the foreign business community in China and also allow us to give full play to the potential we have to contribute to development in China.
MARIANN: Chamber Vice President Stefan Bernhart called for the establishment of a green channel for cross-border data transfers.
STEFAN: My key recommendation is to create a green channel for data that really solves the problem of European companies to transfer data abroad to their headquarters and also to their R&D operations, because the exchange of data that is business-essential is important for European companies in order to successfully run their business here in China.
MARIANN: Ninette Dodoo, board member of the Chamber’s Executive Committee explained how addressing the issue of regulatory uncertainty would contribute to boosting investor confidence.
NINETTE: I think there is a real need for regulatory clarity. Regulatory clarity brings predictability, transparency, fairness to businesses. I think this is really what businesses are seeking to have to incentivise them, to give them encouragement in continuing to invest in China.
MARIANN: Peter Ling-Vannerus, board member of the Chamber’s Executive Committee urged for European banks to be granted access to the central bank’s green financing facilities.
PETER: Well, working in the financial sector, cybersecurity and cross-border data transfer is very important, but I know several of my colleagues have already spoken about that. So, for us being a branch, which many of the European banks are, we would like to have access to the facilities for green financing, that the PBOC, the People’s Bank of China, is providing. I think that would be a gamechanger. We, as many European banks, are very active in the green financing space, and access to subsidised financing is of course key for us to be able to support our European clients, our European companies as they are investing in green solutions, whether it be wind power, solar, or any other way that they might be improving their production facilities, certifying their buildings, and we are there to support them with attractive financing, which would be even better if we had access to the subsidised rates.
RUI: To learn more about the challenges faced by European companies in China and the Chamber’s recommendations to the Chinese Government, read our latest report, which is now available to download for free on the Chamber’s website.
(MUSIC)
MARIANN: Thanks for listening, and don’t forget to tune in next week.
RUI: In the meantime, please find useful links in the episode notes.