Doing business in China is growing tougher, more uncertain, European business group says

By ELAINE KURTENBACH and KEN MORITSUGU
Associated Press

BEIJING (AP) — A report by a European business group says that uncertainty and “draconian regulations” have drastically raised risks for foreign businesses in China. The report by the European Union Chamber of Commerce in China, released Wednesday, urges China’s leaders to do more to address concerns that it says have “grown exponentially” in recent years. Foreign investment in China fell 8% last year from a year earlier as companies recalibrated their commitments in the world’s second largest economy. EU Chamber officials said China’s changing business environment partly reflects moves by Beijing to minimize risks due to trade friction and dependence on imports of key commodities or industrial products. But they said European companies also must manage their own risks.