05:41 GMT +320 August 2018
Listen Live
    A customer counts Chinese Yuan notes at a market in Beijing, August 12, 2015

    Another Failure? West 'Losing Its Positions in Chinese Market'

    © REUTERS / Jason Lee
    Business
    Get short URL
    10363

    China wants to play a leading role in the field of technology and strengthen national enterprises, with Western companies now less welcomed in the country's market compared to recent years, German newspaper Deutsche Wirtschafts Nachrichten (DWN) reported.

    Western companies complain about increasingly losing their positions in the Chinese market, as Chinese authorities have decided to focus on the development of their own companies and innovations, the newspaper wrote.

    In March 2016, the Chinese government introduced a new five-year that no longer preferences companies that want to benefit from China's low wages and even lower environmental standards. Instead, the country wants to become a technology leader in the coming years and therefore started to support national companies in the field of innovations.

    "Chinese companies which are capable of independently competing on the world market are being promoted. Only those Western partners that can bring innovation into the country and assist with required technologies are welcome," the newspaper wrote.

    Thus, the access of European enterprises to the various sectors of the Chinese market has become more and more complicated. According to the new initiative, Chinese companies are supposed to orientate themselves towards domestic consumption and focus on the protection of the domestic market, the newspaper wrote

    "The acquisition of Chinese companies has become more difficult — not easier, as the West wants it to be. The financial sector also remains closed apart from a certain dependence on cooperation with western banks, insurers and exchanges," the article said.

    Earlier, the newspaper reported that Europe may increasingly lose access to its major markets, in particular Russia, Turkey and now China.

    The factors behind this trend are often of political nature. In the case of Turkey, it was the dispute over the Bundestag's resolution on the genocide of Armenians, the attitude of Turkish President Recep Tayyip Erdogan towards journalists, and an increasing number of terrorist attacks in the country. With Russia, economic sanctions and the debate over the Ukrainian crisis played a decisive role.

    Related:

    EU Denial of China Market Economy Status May Have ‘Very Negative’ Effect
    China's Real Estate Market Overheating on Central Bank Stimulus
    Tags:
    innovation, business, market, China, Europe
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment