China's new national security laws 'worry' European companies

Beijing - AFP

The Trade Commissioner of the European Union Valdis Dombrovskis said on Monday that recently approved national security laws in China are "of great concern" to European companies operating in the country.

Speaking to students at Tsinghua University in Beijing, the commissioner said that "the new foreign relations law and the new version of the counterintelligence law are of great concern to our business community" because "their vagueness leaves a lot of room for interpretation."

"They (companies) are wondering whether what many have seen as a win-win relationship in recent decades could become a lose-lose dynamic in the coming years," he added.

"The Chinese government has created a more politicized business environment by expanding its toolkit to protect national security and growth," he said.

"This has manifested itself through low transparency, unequal access to public markets, and discrimination in security standards and requirements..."

The European Union's trade commissioner warned that China's refusal to condemn Russia's invasion of Ukraine is "damaging Beijing's image," stressing that "European companies are concerned about the direction China is taking" and "many are questioning their position in this country."

Speaking to students at Tsinghua University in Beijing, the commissioner said that "there is a reputational risk for China," adding that its stance "damages the country's image not only with European consumers but also with businesses."

"Territorial integrity has always been a fundamental principle for China in international diplomacy," he noted, but "the Russian-led war is a flagrant violation of this principle."

"Moreover, China has always advocated that every country should be free to choose its own development path," Dombrovskis added. So it is very difficult for us to understand China's position on Russia's war against Ukraine, because it violates China's basic principles," Dombrovskis added.

China and Russia are considered strategic allies, often touting their "unlimited" partnership and economic and military cooperation. They have grown closer since the Russian invasion of Ukraine, which China refuses to condemn, began in February 2022.

The Kremlin has been seeking to strengthen its ties with Beijing since the start of its military offensive that has isolated Moscow on the international stage. For its part, China has sought to present itself as a neutral party in the Ukrainian conflict, while at the same time providing Moscow with vital diplomatic and financial assistance.

Chinese President Xi Jinping visited Russia in March, while his counterpart Vladimir Putin is expected to visit China in October.