EuroBiz magazine is the internal journal of the European Union Chamber of Commerce in China, published monthly for Chamber members by SinoMedia Ltd. Distributed to over 20,000 China-based company decision-makers.

President’s Foreword
China and the idea of fair competition

Dear Readers, the final countdown has begun: August 8 marks the start of China’s first Olympics.

The Olympics of course originated in Europe, and it has taken a long time to bring them to China. The earliest Olympic Games were recorded in 776 BC in Olympia, Greece, long before the days of Confucius (551-479 BC) or of the unification of China under the Qin Dynasty (221-207 BC). The modern Olympics started in Athens in 1896, when the Qing Dynasty was in terminal decline. How fitting that the Games are now being staged here at a time when China, amidst what is surely the greatest economic comeback in history, is engaging with the world as a responsible stakeholder.

After a century or more of turmoil and decline, China under Deng Xiaoping was launched on a track of solid growth, which looks set to endure for decades to come. For the established leading nations, the issue is to integrate China into a trade regime that they have built and defended for so long. This successful regime should be able to accommodate China and eventually India as the two rising economic superpowers. In the late 1970s, China joined the International Monetary Fund and the World Bank, before acceding to the World Trade Organization in 2001. China has made great changes and taken risks in order to adapt to the rules of the existing multilateral system of world trade. On the whole, an Olympic spirit of fair competition and openness to all has been understood and respected.

By contrast, I do not think that the unfortunate current vogue for bilateral “Free Trade Agreements” qualifies as Olympian. Indeed, the resulting spaghetti bowl of agreements could actually make international market rules less transparent and more costly. And when we observe the behaviour of participants in the final stages of the WTO “Doha Round” negotiations, or witness the nationalistic tone of recent domestic Chinese discussions about the future of China’s economy, we have to ask whether and how leading nations can steer the world economy in a way that is acceptable to all. These are questions of great importance. Will all players, in an Olympic spirit, abide by the same rules, or will some of the larger economies try to impose new regulations that reflect a national agenda?

China faces a choice: deepen its commitment to openness and competition, which have served its citizens so well over the last 30 years, or decide that it has opened up enough and can afford to turn its back on its global partners. Evidence of China taking the first choice would include new involvement in multilateral organisations such as the OECD. The second choice would be manifested by increasingly protective economic legislation to limit the activities of foreign companies in China.

While China will make this choice, the positions adopted towards China by her international partners will matter. As Fred Bergsten put it in the recent issue of Foreign Affairs: “The Chinese today are hotly debating whether their country should proceed unilaterally or work within the international system, and an offer of true partnership could tilt the outcome of that debate decisively and constructively, raising the possibility that China could continue its upward trajectory without provoking the clashes that previous rising powers have.”

At the European Chamber, we think the Olympic Games offer a useful analogy. Open to all nations, based on common rules and with no cheating allowed. Competition is fundamental and excellence is rewarded. There will be many winners, and all participants benefit from the spirit of mutual understanding, friendship, solidarity and fair play.

Let the games begin.

Joerg Wuttke
President

Download EuroBiz Magazine, August 2008

PDF format, 8.8MB, 80Pages.

Cover Story: The Rules of the Games
Security-related restrictions around the Olympics are presenting Beijing businesses with a number of unforeseen obstacles
By Dominique Patton

Just a few months ago, the China manager of an American multinational firm that makes hightech machines in Beijing (the firm asked not to be identified for this article and will therefore be referred to here as "Company A") was anxiously weighing his options. Rumours were circulating about drastic measures the government was planning to guarantee security and clean up the capital's skies for the summer, but no one was able to confirm any details. If the rumours were true, they would play havoc with his production schedule.

The manufacturer, like many others in Beijing, was set to see its logistics capacity squeezed from all sides by Olympics-related policies. From July 1 until September 20, only socalled "green-label" trucks – those that meet minimum European emissions standards – will be allowed to operate within the city. These number a mere 20,000 or so, about a fifth of the city's total, according to He Huaiwen, general manager of SinoTrans Beijing, and hundreds were already earmarked for official Olympics business. ...

Visit The European Union Chamber of Commerce in China Official Website

The Chamber was formed with the support of the EU Delegation in Beijing on 19th October 2000. It is a non-profit membership fee-based organisation with offices in Beijing, Shanghai and Nanjing, Guangzhou, Tianjin and Chengdu.

Today, the Chamber is the leading exponent of European business interests in China creating a continuously growing business forum. It comprises of over1090 members, from global companies to small-medium enterprises. Its mission is to serve member companies by being the Voice of European Business in China.

It is built around a core of some 30 Working Groups,  which meet regularly to discuss business issues in their respective industries. The Working Groups contribute to an annual Position Paper on Business in China, which the Chamber presents to the Chinese and European governments.

The Chamber is managed by a National Executive Committee made up of representatives from various European Member States. The Supervisory Board and the Advisory Council provide strategic input for the National Executive Committee. Each Chapter is managed at the local level by a Local Board which reports directly to the National Executive Committee.

Executive Committee members, the Supervisory Board and Local Boards are elected at the Spring Annual General Meeting.

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