BEIJING - A top European business lobby said on Tuesday that China must fulfill promises to give greater sway to market forces and rein in its bloated state sector, warning that not doing so will lead to economic stagnation and stoke continuing tensions with trade partners.
“With a possible crisis looming on the horizon it’s now the time to walk the talk,” European Union Chamber of Commerce in China President Joerg Wuttke told reporters ahead of the launch of the chamber’s annual position paper. Chinese banks have long tended to favor lending to the state sector as repayment is seen as guaranteed. Many of China’s smaller, private companies have struggled to access credit amid a crackdown on the shadow banking system, which they had relied on instead.
Beijing’s support for its SOEs also leads to suspicion abroad and is driving current U.S.-China tensions, said the paper. U.S. demands that China curb the development of its SOEs were described as an “invasion” on its economic sovereignty by Chinese state news agency Xinhua in May.
Reforming SOE is a prerogative right of employers. If they don't stand global competition,its natural,they decline/die.No country can arrogate to interfere with other country/employer in its policy,management/control. EU has no such right with china/ any country except to trade?
EU again Protection racket
Let them live, Chinese have helped a lot to the US
🤔 teaching china
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Source: CNBC - 🏆 12. / 72 Read more »