EU trade chief warns businesses questioning future in China

The EU's trade chief told Beijing on Monday (Sep 25) that tough security laws and a more "politicised" business environment have left European companies struggling to understand their obligations and questioning their future in China.

The EU's trade chief told Beijing on Monday (Sep 25) that tough security laws and a more "politicised" business environment have left European companies struggling to understand their obligations and questioning their future in China.

China's refusal to condemn ally Russia for its war in Ukraine also poses a "reputational risk" for the world's second-largest economy, Trade Commissioner Valdis Dombrovskis said in a speech at Beijing's Tsinghua University.

He said transparency and openness were "a winning strategy in the long run", at a time when trade tensions between the European bloc and China are mounting.

"China is navigating a challenging transition from an investment-led economy to a broad-based economy," he said.

"For this it needs to remain open."

Dombrovskis's four-day trip, which kicked off on Saturday, follows a report by the EU Chamber of Commerce that showed business confidence was at one of its lowest levels in years.