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EU chamber lobbies China to walk the talk on market liberalisation

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EU chamber tells China to walk the talk on liberalising markets to boost FDI, cement Shanghai as global financial hub

Shanghai has to reduce taxes and red tape, make the yuan fully convertible and broaden market access to draw more investment, says chamber leaderEuropean companies have a ‘heightened sense that precaution is necessary in the face of uncertainty’, Shanghai chapter chairman saysBanking & financeDaniel Renin ShanghaiPublished: 9:30pm, 27 Sep, 2023Why you can trust SCMP

A key European business group in China is urging mainland authorities to renew their efforts to turn Shanghai into a global financial hub to increase the flow of foreign direct investment (FDI) into the troubled economy.

Shanghai has to cut red tape, reduce tax rates, make the yuan fully convertible and broaden market access for foreign companies to attract businesses, talent and capital, said Jens Ewert, a board member of the Shanghai chapter of the European Union Chamber of Commerce, adding that liberalisation over the past two decades has not lived up to expectations.

“I think it is still very far away from that,” Ewert told a conference in Shanghai on Wednesday. “There are structural issues around the currency and access to the market, which are still not fixed in 20 years.”

It is important for mainland authorities to walk the talk now and take a substantial step forward in luring foreign funds and talent.

The proposal to transform Shanghai into an established international financial centre echoes the city’s ramped up efforts to attract FDI after China reopened following the end of its strict Covid-19 pandemic curbs early this year.

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