EU companies have faced a lack of playing field in the Chinese market as the world’s second-largest economy unveiled national security and anti-espionage laws, raising compliance risks for foreign companies. Against this backdrop, European entrepreneurs are concerned about the new legislation as it makes the rules of bilateral trade quite vague. Beijing's new national security laws are hampering foreign companies, according to a report by the EU Chamber of Commerce in China. In a meeting with Chinese delegates, Chamber representatives complained about ambiguous statements made by the Chinese authorities. Jens Eskelund, the president of the European Chamber of Commerce in China, said that the Chinese authorities' national security and tightening regulatory regimes were hampering foreign companies in the country. Against this backdrop, tensions between Brussels and Beijing are intensifying. The situation is exacerbated by the fact that the EU launched an investigation into Chinese electric cars, citing heavy state subsidies for their production. At the same time, China is refuting Brussels' allegations of unfair subsidies. “The measures taken by the EU violate the principles of market economy and the rules of international trade. The [move] is not conducive to the stability of the global supply chain in the automotive industry and is not in the interest of anyone, including the EU,” Deputy Director of Information at the Chinese Ministry of Foreign Affairs Mao Ning said. Meanwhile, Brussels and Beijing say they seek equal and mutually beneficial trade relations. However, it is difficult for the parties to strike a balance and reconcile free European business with Chinese business, which has a different approach to regulation.
