Opportunity to eliminate concerns
Creating greater reciprocity should also be in China’ s inter-
ests. This would give them the opportunity to eliminate
concerns about Chinese foreign investment and allowfor
positive bilateral negotiations.
A sore point is the owner-
ship structure of Chinese companies, which remains opaque
to outsiders. In addition to the unclear formal ownership
structures, there is a multitude of informal entanglements
between government and business which also affect the
private sector. More openness and transparency about Chi –
na’ s state participation in FDI would be desirable and could
contribute in the long termto removing generalizing prej –
udices.
Germany and China benefit greatly from their bilateral
investment and trade relations. It is in the interest of both
countries to promote mutual investment and to assist
investors from the other country as much as possible.
This includes equal access to the market, transparent
investment promotion, and a non-discriminatory invest-
ment environment as already exists in Germany. China also
finally ought to ensure that these conditions equally apply
to foreign investors in China.
EU Forecast
euf:ba1.8i:63/nws-01