‘Uninvestable’ Is Not an Accurate Description of China, Says EU Chamber of Commerce – Reuters

By Laurie Chen

BEIJING (Reuters) – The European Union Chamber of Commerce in China announced on Wednesday that it would not adopt the term "uninvestable" when referring to China, following comments from the United States.

U.S. Commerce Secretary Gina Raimondo remarked late Tuesday that American companies have increasingly labeled China as "uninvestable," leading Beijing to defend its business practices and foreign investment policies.

"‘Uninvestable’ is not a term we would use to describe China," stated Jens Eskelund, president of the EU chamber, in an email response to inquiries from Reuters regarding Raimondo’s statements.

Eskelund noted, however, that China remains "under-invested" given the level of foreign direct investment it receives from Europe relative to its economic size. He also highlighted a trend of decreasing EU investment into China in recent years.

In line with Raimondo’s concerns, Eskelund pointed to issues in China’s business environment, such as unclear regulations and security concerns.

"China can do much to turn this around," Eskelund remarked. "But it would take clear, concrete, and specific actions to alleviate some of the worries affecting companies’ investment decisions."

He referenced a recent business survey from June indicating that nearly two-thirds of chamber members would contemplate expanding their presence in China if market access were to improve.