中国贸促会-欧盟营商环境报告2020-2021（英文）-2021.5-138页_60mb

Summary of the Business Environment of the European Union 2020/2021

Core Content

This report provides an in-depth analysis of the business environment in the European Union (EU) from the perspective of Chinese enterprises, based on surveys, interviews, and econometric analysis conducted between May 2020 and the end of 2020. It highlights the challenges faced by Chinese firms in the EU, the impact of the pandemic, and the need for policy improvements to enhance trade and investment relations.

Main Points and Key Information

1. Research Methodology

• Questionnaire Survey: 1,000 questionnaires were distributed, with 253 valid responses from senior managers of Chinese enterprises operating in the EU.
• Company Interviews: 101 companies were interviewed through on-site visits and interviews in China.
• Econometric Analysis: A model was developed to assess the impact of changes in the EU business environment on Chinese enterprises.
• Policy Research: The report systematically analyzed EU and Member State policies related to the business environment since 2020.

2. Characteristics of Respondents

• Ownership: 54.15% private enterprises, 39.13% state-owned enterprises (SOEs), 3.95% foreign investment enterprises (FIEs), 1.98% joint ventures, and 0.79% collective enterprises.
• Size: Large enterprises accounted for 35.18%, medium-sized for 29.64%, small for 28.85%, and micro enterprises for 6.33%.
• Sectoral Distribution: Manufacturing was the largest sector, followed by scientific research and technical services, information transmission/software and IT services, and wholesale and retail.
• Top 5 Member States: Germany (56.92%), France (45.45%), Italy (40.32%), Poland (29.25%), and Spain (24.51%) were the top destinations for Chinese investment in the EU.

3. Impact of the Pandemic

• The pandemic significantly affected Chinese firms' investments in the EU.
• Chinese enterprises faced reduced revenue and profits, with 40% planning to scale back operations.
• The EU's response to the pandemic was perceived as inadequate by Chinese enterprises.
• There was a lack of equal access to EU support policies for Chinese firms.

4. Rising Protectionism

• The EU and some Member States implemented protectionist measures, including increased foreign investment screening.
• The White Paper on foreign subsidies introduced new barriers to market entry.
• Some Member States openly discriminated against Chinese 5G companies.

5. Over-Regulation

• The GDPR significantly increased compliance costs for Chinese enterprises.
• The complex institutional environment raised operational difficulties for foreign firms.

6. Unreasonable Standards System

• Products entering the EU market faced abnormally high technical standards.
• Chinese enterprises were excluded from participating in the development of EU standards.

7. Public Services

• Discriminatory law enforcement created uncertainty for business operations.
• Inadequate public service capacity hindered business performance.

Key Recommendations

• Support Enterprises During the Pandemic: Ensure equal access to support policies and strengthen coordination among EU Member States.
• Abandon Discriminatory Barriers: Ease restrictions on foreign enterprises and simplify foreign investment review procedures.
• Reduce Over-Regulation: Lower the negative impact of GDPR and improve regulatory integration.
• Create a FIE-Friendly Standards System: Reduce technical barriers and ensure fair participation in standards development.
• Improve Public Services: Enhance transparency and standardization in law enforcement and public service capacity.

Chapter Highlights

Chapter 1: Current Status of China-EU Trade and Economic Cooperation

• China became the EU's largest trading partner for the first time in 2020.
• Despite the pandemic, China-EU trade showed positive growth.
• Chinese ODI in the EU declined in 2020, with the majority of investments concentrated in Germany and Italy.
• EU companies remained confident in investing in China, with increased FDI inflows.

Chapter 2: Overall Evaluation of the EU's Business Environment

• Chinese enterprises generally expressed pessimism about the EU business environment.
• 30% expected to operate at a loss, 60% expected revenue and profit declines, and 40% planned to scale down operations.

Chapter 3: General Problems of the Business Environment in the EU

• Worsening Business Environment: Reduced investment willingness due to financing difficulties and over-regulation.
• Pandemic Impact: Severe effects on Chinese enterprises, with poor evaluation of the EU's pandemic response.
• Protectionism: Increased foreign investment review and discrimination against Chinese 5G firms.
• Over-Regulation: GDPR and other regulations raised compliance costs.
• Unreasonable Standards: High technical standards and lack of participation in standard development.
• Public Services: Discriminatory enforcement and inadequate capacity affected business operations.

Chapter 4: General Recommendations

• Support Enterprises: Ensure equal access to support policies and improve coordination.
• Remove Discrimination: Eliminate barriers for foreign investors and treat all FIEs fairly.
• Reduce Regulation: Simplify compliance procedures and lower the impact of GDPR.
• Fair Standards: Ensure equal opportunities for FIEs in standards development.
• Improve Public Services: Enhance transparency and service capacity.

Chapter 5: Foreign Investment Review

• The EU introduced new FDI screening measures, increasing uncertainty and investment risks.
• Chinese enterprises faced discrimination in the review process.
• Recommendations include stopping the use of the pandemic as an excuse to tighten FDI rules and treating foreign investors fairly.

Chapter 6: Competition Policy

• The EU's White Paper on foreign subsidies was seen as an upgraded protectionist measure.
• Increased review burdens and lack of uniform antitrust enforcement created uncertainty.
• Recommendations include removing discriminatory measures and easing review burdens.

Chapter 7: Cross-Border Movement of People

• The EU imposed travel restrictions, affecting trade and investment.
• Visa requirements created additional barriers for foreign businesses.
• Recommendations include lifting travel restrictions and simplifying visa processes.

Chapter 8: Digital Economy

• The EU's cybersecurity review and 5G regulations were seen as discriminatory.
• Recommendations include fair treatment of Chinese 5G companies and reducing over-regulation.

Chapter 9: Finance

• The EU's accommodative economic policies raised the risk of debt crises.
• FIEs faced tighter financial regulations.
• Recommendations include withdrawing excessive policies and minimizing the adverse impact of AMLD.

Chapter 10: Public Procurement

• Public procurement processes showed de facto discrimination.
• Opaque and vague provisions created entry barriers.
• Recommendations include improving transparency and supporting China's participation in the Government Procurement Agreement.

Chapter 11: Logistics

• The pandemic caused a significant decline in logistics and transportation capacity.
• Recommendations include increasing support for the logistics sector and promoting China Railway Express.

Chapter 12: Medical Care

• The EU's standards for medical equipment were seen as burdensome.
• Recommendations include improving trade facilitation for medical products and providing more free medical standards.

Conclusion

The report underscores the importance of China-EU trade and economic cooperation, especially in the post-pandemic era. It highlights the need for the EU to improve its business environment by addressing issues such as protectionism, over-regulation, and discriminatory practices. The recommendations focus on promoting fair market access, reducing regulatory burdens, and enhancing transparency and cooperation between China and the EU.