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Interview: greener, easier investment to help China-EU trade balance |
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11:45, May 09, 2008 |
Stricter environmental policies will not scare foreign investors off from China, and Chinese investors hope for fewer barriers in the European market, Mr. Yu made the comment.
A stricter environmental policy is a part of the country's efforts on achieving "harmonious and sustainable development". China has stepped up the legislation of environmental laws and regulations in recent years. The Law of Prevention and Treatment of Water Pollution , for example, is in effect as of the end of February this year. And five national environmental standards have been issued since the environmental authority was promoted to a ministry from a bureau at the end of March this year.
The EU has the strictest environmental policies in the world. Its three new standards in particular on the energy consumption and environmental impact of electrical and electronic products, RoHS, WEEE and EUP, have affected Chinese exporters much especially because such products play a leading role in China's export to and import from the EU.
In the Joint Statement of the 10th China-EU Summit released on Nov. 28, 2007, China and EU pledged to adopt "stricter environmental standards" in their investment policies.
Some fear that a stricter environmental policy, plus stricter new laws and regulations on labor and industries, will scare foreign investors off from China. In Yu's view, investors build their decisions on their judgment of the whole picture: the economy, the labor cost, the size of the market, the infrastructure, etc.
For companies, such policy is not necessarily an "investment restriction". it is an encouragement for companies to offer more environment-friendly products to consumers with growing awareness of environmental protection. "The days when we are comfortable with polluting production has long gone," Yu said.
In terms of total amount, the EU is the fourth largest source of foreign investment into China. It has invested 59 billion USD in China and EU companies in China made 206.6 billion USD of domestic sales and 43 billion USD of exports from China in 2006.
But Chinese investment in the EU is still modest. In 2006, it posted only 1.3 billion USD, according to the statistics of the Ministry of Commerce.
Investors from developing economies like China have limited capital and it is "natural and right" for a maturely developed economy like the EU to offer appropriate policy environment, said Yu. However, the reality is that they are facing a lot of barriers when they go global. One of the problems Yu mentioned is the problem of visa application. Chinese investors can only get visas for three or six-month stay in EU countries. They may lose business deals under negotiations in case they are forced to return to China to apply for new visas.
Yu disclosed that the issue of investment will be discussed at the HED. It makes part of the master plan of the HED.
What China wants, he said, is to "make sure Chinese investors are not subject to discriminatory restrictions."
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China-EU High Level Economic and Trade Dialogue
By People's Daily Online
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