European companies in China hope that the Chinese government will increase market access, enhance the transparency and consistency of legislation, improve regulatory efficiency and encourage innovation through intellectual property protection for the development of foreign-funded companies in China, according to the European Business in China Position Paper 2011/2012 released today in Beijing.

As China is trying to rebalance its economy, new drivers of growth are needed to replace old ones. China should not simply depend on exports, infrastructure investment and low-end manufacturing. Instead, domestic consumption, the development of private business, the service industry and industrial upgrades should all be positioned to maximize economic development.

European companies have both advanced and green technologies, state-of-the-art service industries, and good innovation skills. Therefore, they are ideally positioned to play a bigger role in promoting the realization of the goals set out in the Chinese government’s 12th_Five-Year_Plan (2011-2015).

Despite Premier Wen Jiabao's assertion that all enterprises registered in China are Chinese companies, irrespective of where their funding comes from, European companies still feel discriminated against in terms of legislation and business operation. Furthermore, the number of European companies holding such views has increased in the last two years.

Therefore, European companies hope that the Chinese government will lower the thresholds against foreign investment for market access by eliminating the barriers it set up, as well as ensure that legislation is transparent and consistent. The government also needs to prove that it can guarantee regulatory efficiency and protect intellectual property rights.

This is the 12th edition position paper issued by the European Union Chamber of Commerce in China since its launch in 2000. During the last six months, the European Chamber has solicited opinions from hundreds of European companies in China and received more than 600 suggestions for the Chinese government.

According to Davide Cucino, president of European Union Chamber of Commerce in China, the paper was "considered highly" by the Chinese Ministry of Commerce (MOC). Mr. Cucino's comment came after he presented and discussed the suggestions made in the paper with Zhong Shan, vice minister of MOC. The European Chamber is also planning to present the paper to more Chinese government ministries.

The paper’s suggestions cover 38 working group subjects on different industries and eight local focuses covering Beijing, Chengdu, Chongqing, Nanjing, the Pearl River Delta area, Shanghai, Shenyang and Tianjin.

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