The European Chamber of Commerce in China suggested on Wednesday that China's anti-trust probes are unfairly targeting foreign firms with different rules applying to domestic firms.
The Wall Street Journal says that the call comes as foreign businesses have come under pressure in China, where regulators are attempting to level the corporate playing field by using anti-trust laws against multinational companies. The auto sector in particular has been under government watch, with regulators launching probes of anti-competitive behaviour.
The European Union Chamber in China, which has 1,800 members said in a statement Wednesday that members had presented "alarming" accounts that intimidation tactics are being used to force companies to accept punishment without full hearings. Chinese authorities are advising companies not to challenge investigations or seek legal or government assistance, the statement said.
The Chamber added: "While the European Chamber
recognises that a number of Chinese companies have been investigated for AML
violations, the European business community is also increasingly considering the
question of whether foreign companies are being disproportionately targeted in
The Journal comments that several China-based
foreign economists echo the call to ease restrictions and probes of foreign
companies, stating that Chinese authorities should be working to chip away at
policies favoring state-owned companies.
© Copyright 2011 by Finfacts.com