BEIJING - European companies in China are increasingly afraid of"arbitrary punishment" amid a more politicised business environment, a European business industry group said on Thursday .
The report warned that the risk of deteriorating relations between China and Europe - over issues like Beijing's treatment of the Uighur Muslim minority and new national security legislation for Hong Kong - could seriously impact European companies doing business in China. Already inflamed by Australia's allegations that China was meddling in its domestic affairs, relations worsened when Prime Minister Scott Morrison called for an independent inquiry into the origins of Covid-19.
The report also cites a continued lack of significant opening of China's market, with bureaucratic obstacles to full entry in sectors like banking and insurance, cutting off foreign companies from gaining market share.
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