Companies fear 'arbitrary punishment' amid China-Europe tensions

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They were left navigating a political minefield that could seriously impact European companies doing business in China. FMTNews China Europe

China’s export growth accelerated in August while imports edged lower as the world’s second-largest economy extended its recovery from the coronavirus pandemic.

“Companies are left navigating a political minefield during a health crisis of truly overwhelming proportions,” chamber president Joerg Wuttke said in comments attached to the report, which draws on contributions from working groups, surveys and comments from its more than 1,700 members. The report cited China’s imposition in May of a more than 80% tariff on Australian barley imports, effectively stopping a billion-dollar trade in a move widely viewed as linked to escalating political tensions between Canberra and Beijing.

“Chamber members cannot help wondering if these actions and inactions are indicative of a broader mindset that while foreign capital and technology are desired in China, foreigners themselves are not,” it said.

 

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