European business group warns of China economic stagnation if SOEs not reined in

  • 📰 Reuters
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 97%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

A top European business lobby said on Tuesday that China must fulfill promises t...

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

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

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks seen lower as traders watch US-China trade developmentsEuropean shares are set to open lower on Monday, with investors keeping a close watch for developments on the U.S.-China trade front.
Source: CNBC - 🏆 12. / 72 Read more »