European chamber warns China may lose appeal for investors if it doesn’t act | South China Morning Post

Back in the 80s I was a China consultant working for Australian companies wanting to do business in China. Many were trying to establish joint ventures in the People's Republic. One case I was in charge of was trying to do the opposite. It was IXL Ltd from Melbourne and it was trying to get out of an agricultural joint venture it had got into in Yunnan province and which it had decided was a mistake.

The joint venture agreement had a clause dealing with what happens when one partner wants to leave. But the Chinese sides first impulse was to tell us to take a hike. We made the point that they should not do this as it would impact badly on China's reputation. End of the day that worked and we got some money to get out. 

Just a few years later, let alone thirty plus years later, that approach would not work. The desperation of international companies not to miss out on the "world's largest market"that they didn't give two hoots about an argument about China's reputation. 

An old Aussie mate of mine has been working in China for over thirty years. Also dealing mainly with Australian companies wanting to do business in China. Every now and then I ask him how business is. And every time the answer is "worse". Chinese partners more arrogant, more self-interested, more screw you jack, if you want to do business with us you do it our way or it's the highway for you. 

For that reason, I agree with the get-tough-on-China policy. I don't agree with the way Trump is going about it, but going about it is the correct and necessary move. And as Mao Tse-Tung said, you have to break some eggs to make an omelette. 

All those talking about who will hurt most or benefit most miss the main point. China is in the wrong. It's a serial offender, a serial cheat. Complaining to the WTO has failed. It's time to get tough, even if that involves hurt all around. And phooey to those who suggest that China is somehow right in retaliating (though of course it must be expected in the context of a negotiation). 

Here the European Chamber of Commerce in China makes the case..

Another long-standing concern of many foreign companies operating in China is forced technology transfers. The chamber said 19 per cent of the companies surveyed – in sectors such as aviation, cars, chemicals and engineering – felt compelled to transfer technology.

Meanwhile, 43 per cent said they had found it more difficult getting access to the sectors listed under the Made in China 2025 policy, although access had improved for larger European firms, particularly in cars and machinery.

Companies surveyed identified the top regulatory obstacles as unfavourable treatment in dealing with administrative issues, discrimination in enforcement of rules, market access barriers and licensing requirements. Legal services, pharmaceutical and medical devices were among the sectors that reported the most cases of unfair treatment.