Bencham, in cooperation with the European Union Chamber of Commerce in China, is bringing you to a presentation about China's Corporate Social Credit System and the Position Paper of the European Chamber.
The European Chamber has partnered with Sinolytics to provide a thorough analysis of the Chinese Social Credit System (SCS). This major report outlines how European companies can begin to deal with the acute disruptions that the SCS will bring, as well as the issues they will have to address to ensure compliance. One of the biggest challenges facing European companies in China is the perpetuation of China's 'economic caste system', which distinguishes companies by ownership, and favours state-owned over private and local over foreign. This biased economic structure pits finance-starved private companies against the unnaturally enhanced, inefficient SOEs that are at the core of the China's structural problems. The continuation of this system is doing little to inspire the European business communities' long-term confidence in China's economy.
Fortunately, there are some signs that a re-examination of China's current economic course is needed, with loud and prominent voices from within the government having voiced support for the concept of 'competitive neutrality'. This idea, originally developed in Australia and then embraced widely across OECD countries, begins with the simple premise that government should not provide special treatment to any given enterprise. Embracing this idea, while also reinvigorating SOE reform, can begin to resolve some of the foundational problems that are limiting China's development.
To help achieve this, the European Chamber has proposed a series of bold recommendations to the Chinese Government, which require it to undertake considerable unilateral changes that are in its best interests. At the same time, the Chamber has proposed actions that the EU can take to better protect itself from the market distortions caused by China's hand-picked 'national champions', while also strengthening the common market and creating the kind of environment in which all companies can thrive.
Join us on 7th of January, 2020. Mr Francis Liekens, Vice Chair of the Shanghai Chapter of the European Chamber, will present the main results of this report.
199 Nanjing Road East, Shanghai, 200002
Heritage Building, 3F, Meeting Studio 1
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