(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.
European companies are upping the pressure on China to go beyond rhetoric at this year’s China International Import Expo, asking for “more tangible outcomes” than at the launch in 2018.
“We expect this year’s event to be supplemented by concrete measures to facilitate further market opening and increase foreign investment, not by empty promises that we have heard many times before,” Carlo D’Andrea, vice president of the European Union Chamber of Commerce in China, said in a report based on a survey of European companies in China.
The complaint comes a year after President Xi Jinping pledged to strengthen intellectual property protection and further open the Chinese economy, at an event that seemingly yielded thousands of agreements across sectors. Yet according to the business association’s report on Monday, some of these deals were more symbolic in nature.
Only half of European companies who participated in the expo managed to make deals last year, and many saw “no follow-through” as their partners failed to fulfill obligations, the report said. Of the 42% of surveyed members who participated in 2018, 79% expect to join again this year, and other companies who didn’t go last year will attend in 2019. But the high costs, logistical issues, and difficulty in obtaining relevant information are factors deterring participation, especially by small and medium sized companies.
Xi is expected to renew his pledge to open China’s markets when he addresses the fair on Tuesday, and he will be followed by a speech by French President Emmanuel Macron. The expo was launched as part of China’s efforts to boost domestic consumption and re-brand itself as an importer of goods, shifting away from the export-led model that helped spark the trade war with the U.S.
On Friday, the EU warned “there is real danger of promise fatigue,” and said more needs to be done to offer foreign firms a level playing field in China. Addressing the EU’s comments on Monday, Chinese Foreign Ministry spokesman Geng Shuang said “China always honors its commitment to reform and opening up” and its efforts should be seen as “a long-term consideration toward the world’s future and common development.”
