Living in China for 33 years, J? RG Wuttke, who served as chairman of the Chinese EU Chamber of Commerce in different periods, said in an exclusive interview with Lianhe Zaobao that the uncertainty brought by Chinese politics was affecting European companies to China.The primary factor of investment confidence.
Woodkek accepted an exclusive interview with Lianhe Morning Post before participating in the Huiyan China Global Forum on October 27.He revealed that in the first seven months of this year, the EU EU enterprises were not operating in good operation. Almost every family had a double decline in business and profits, and it gradually improved until August."(I) I am not sure how optimistic can it be in 2024, but we have bottomed out and came out."
The confidence in expanding investment in China has not recovered.The EU Chamber of Commerce's business confidence survey in June shows that only 55%of the interviewed companies regard China as one of the three major investment destinations in the future. The lowest in 20 years will consider shifting the original investment in China to other markets. 8%Have taken such measures.
The reasons behind the analysis of Woodkek include China's economic challenges, domestic politics, international geopolitics, etc."The most important thing is China's politics. This means that China wants to deal with its own problems, which means that the real estate crisis, local debt, and (improved) commercial banks."Unsuccessful"
Woodkek told the media after the 20th National Congress of the Communist Party of China last year that an era was over.In this interview, he said that living in China for more than 30 years, China's power transition has become natural and smooth, but now it is difficult to judge what changes in CCP leaders will happen after 10 years."Such uncertainty was not felt before 2022."
"Secondly, it is clear that ... now the central government has greater power, the local government is smaller, and the state -owned enterprises are stronger than private enterprises. This is not a sudden occurrence, but a process of gradually evolving."
One of the results of political uncertainty is the departure of small and medium -sized enterprises.Woodker analyzed that the EU's investment in China focused on a few companies.Last year, Mercedes -Benz, Volkswagen, and BMW, and his investment in Basf, his chemical company, accounted for one -third of Europe's direct investment in China.
He said that chemical companies, automobiles, and machine manufacturing will stay."Regardless of whether (the country) is communism or not, as long as there is the freedom to do business, and no one allows us to do a business conflicting with values, it is no problem. But for others, especially small and medium -sized enterprises, they are re -consideration.Should I do business in an excessive political environment "
"They decide, maybe it is not so political, so they vote with their feet."
Fair market access and competition
But Woodker also emphasized that China is the second largest economy in the world, and there is no "second China" at this stage.If market access can be relaxed, up to 60 % of EU companies will consider expanding their business in China.
He said that the EU Chamber of Commerce collected the opinions of enterprises in various industries and gathered to 1,058 suggestions. The core of the proposal was fair.Whenever the official asked what the government could do to boost the confidence of foreign investment, he said to read those suggestions.
He said: "We hope to have predictable, stable rule of law and regulatory environment, and do not want to be in a unfavorable position just because of foreign -funded identity labels."For example, they said that they hit the wall again and again because the hospital was asked to use less foreign brands."This is very bad for companies such as Siemens, General Electric, Philips and other companies."
Woodkek believes that companies are always lobbyists who often stand on the side of China and are natural allies in China."If they feel frustrated, no one will be in Paris, Berlin, Brussels, and Washington to prevent politicians from taking a tough attitude towards China."He said that to some extent, China destroyed its relationship with natural allies and accelerated the speed of "de -risk".
But the good news is that the Chinese Communist Party also talks more with foreign companies.He said: "In such a dim and covered with protectiveism, he can find time to talk to European companies to help each other understand each other."
