EU: sustainable growth demands equal access

The upcoming leadership transition provides the opportunity to enact much-needed reforms in China's approach to foreign and domestic private investment, according to the European Union Chamber of Commerce in China, which today launched the 13th annual edition of its primary lobbying document, the European Business in China position paper 2012/2013.

The Position Paper offers both Chinese and European policy-makers over 600 recommendations, which contains general and specific recommendations to Chinese policy-makers outlining suggested steps to improve the Chinese business environment. These cover general recommendations to improve the administrative and operational business environment.

China holds a historic opportunity to create the conditions for a second period of sustained growth through a move up the value chain, whereby the marketplace functions to ensure that the most innovative, productive and efficient companies prevail.

David Cucino, President of the European Chamber said, "The state-led investment model has reached the end of its shelf-life. It has fostered 30 years of breakneck growth and lifted millions out of poverty, but it is no longer sustainable because it is by nature unequal. Now the low-hanging fruits have been plucked and productivity returns on investment are more difficult, healthy competition is needed to ensure efficient capital utilization and to encourage private capital investment, as well as to drive income and consumption growth, but most notably, to breed innovation."

So China and the EU should together identify opportunities for cooperation. The China-EU partnership can provide opportunities for EU business in the process, and also beneficial for the overall sustainability of China's urbanization course. Such partnerships are not only important for their direct benefits to both parties, they can also assist in molding a more positive image of the China-EU relationship in the eyes of the public.