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Fast growth offers opportunities for foreign investors
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Joerg Wuttke first traveled to China in 1982 when the train journey took about 20 days from his hometown in Germany to Shanghai.

Now, as president of the European Union Chamber of Commerce in China, he frequently shuttles back and forth between China and Europe.

"Travel has become much easier and China has already been integrated into the world," said Wuttke, whose chamber has been expanded to more than 1,100 EU businesses in China from just 51 members in 2000.

Apart from easier access to the outside world, Wuttke has been surprised by China's amazing economic growth rate and the country's achievement in realizing the rule of law.

He said sustained economic development, which has grown by an average of 10 percent for the past 29 years, had opened great opportunities for overseas investment. And since 2003, despite that year's SARS outbreak, China has recorded solid growth.

Statistics indicate that the economy has expanded by more than 10 percent in each of the past four years, at an average of 10.4 percent.

That's more than double the average growth rate of the world economy during the same period, and higher than any period since China opened up in the late 1970s.

EU statistics reveal that bilateral trade between the EU and China exceeded $354 billion (250 billion euros) in 2006, up 22 percent on the previous year.

Meanwhile, Wuttke praised China for rapid progress in lawmaking, hailing efforts as integral to a strong market-based economy.

He said the approval of the Anti-Monopoly Law this summer by the National People's Congress, China's top legislative body, was the latest sign that the world's most populous country was committed to a market economy.

"In this context, EU businesses have been expanded greatly in China," said Wuttke, adding that his chamber welcomed a more open economy and a level playing field for business.

Chinese consumers simultaneously benefit from greater economic efficiency and stronger protection against the abuse of market dominance by curbing monopolistic behavior.

With the continued strong growth of China's economy, the business environment remains attractive for European companies, but Wuttke also expressed some concerns.

He said continued limitations on investment in certain industries, such as automotive, telecoms, petrochemicals, and energy, still remain despite the Chinese government promising two years ago to open them to both foreign and private sectors.

In a report launched by the chamber recently, barriers were identified as "challenges" ahead for China-EU business and trade development.

He said his chamber had delivered the report to both Chinese and EU governments, urging them to take further measures to facilitate business investment.

But sources close to the government said China's market status would be among the points in a pact, scheduled to be signed by leaders from the two sides when the China-EU Summit is held next month.

Wuttke's other concern is the enforcement of law.

Welcoming new laws and regulations including the Property Rights Law, Labor Contract Law and new accounting rules, he said his chamber called for greater consistency, implementation and enforcement of laws and regulations, particularly at the local level.
On the subject of the 17th CPC National Congress, he said he hoped China's leaders would work on creating a legal framework for further market integration with the global economy.

He said his chamber and members strongly supported China's policies of continuing economic reform, domestic market development, improved energy efficiency, more effective environmental protection and action to reduce social inequality.

"We believe that European companies can and do contribute positively to all these goals," said Wuttke.

(China Daily October 15, 2007)

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