European companies in China are increasingly afraid of"arbitrary punishment" amid a more politicized 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. Travel restrictions imposed amid the pandemic have also left many European company employees stranded outside of China, and discrimination against foreigners was ignored by Chinese officials, the said.
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