Source: InfoMoney. Reuters.

 

Multinational companies and governments have complained of “economic coercion”, with the tightening of the country’s anti-espionage law; foreign direct investment contracted 8% last year

Beijing (Reuters) – Amid efforts to strengthen its industrial chains and halt the decline in foreign investment, China committed this Monday (25) to treating foreign companies in the same way as national companies.

“China will fully guarantee national treatment for foreign enterprises, so that more foreign enterprises can invest in China with confidence and peace of mind,” Vice Minister of Commerce Guo Tingting said during the China Development Forum in Beijing .

Guo did not elaborate on how China would ensure “national treatment,” or equal treatment of domestic and foreign companies in accordance with World Trade Organization (WTO) principles.

“Economic coercion”

For years, Western companies have complained about unequal access in China, a vast consumer market as well as a global supplier of raw materials and components. Western governments have expressed concerns about “economic coercion,” and several companies have considered “de-risking” exposure to Chinese supply chains and operations.

China’s introduction of a broader anti-espionage law, bans on leaving the country and raids on consultancies and companies have further chilled foreign fund flows. Foreign direct investment contracted 8% last year.

Geopolitical tension, particularly with the United States, over a range of issues, including U.S. concerns that U.S. chips and artificial intelligence (AI) technology could be used to boost Chinese military capabilities, has also weighed on the investor sentiment.

In response, China has stepped up efforts to address foreign investors’ concerns, pledging to protect the rights of foreign companies and promising to further expand entry into its markets.

China will continue to open up high-level areas of industry and finance and create more market opportunities, as well as firmly safeguard a multilateral trading system with the WTO at its center, Guo said.

On Sunday, Premier Li Qiang said China will continue to strive to create a first-class business environment and welcome companies from around the world to invest in the country.

Link: https://www.infomoney.com.br/economia/china-promete-passar-a-tratar-empresas-estrangeiras-de-forma-igualitaria/

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