EU Chamber Criticizes China CIIE: The European Union Chamber of Commerce has voiced its criticism of the upcoming China International Import Expo (CIIE), slated for November 5-10, in Shanghai. The annual event, initiated by President Xi Jinping in 2018, is designed to showcase China’s commitment to free trade and reduce its trade surplus with various partners. However, the EU Chamber believes the CIIE has evolved into more of a “political showcase” than a platform for business, raising concerns among European companies.
While Premier Li Qiang is set to address the attendees at the opening ceremony, the EU Chamber argues that the event has not fulfilled its goals of enhancing China’s global imports and demonstrating the nation’s openness and reform agenda. Instead, China’s trade surplus with Europe has notably increased over the past five years.
According to Carlo D’Andrea, the chamber’s vice president, “European businesses are becoming disillusioned as symbolic gestures take the place of tangible results needed to restore business confidence.”
The CIIE organizers have not responded to these concerns. China has expressed a willingness to boost its imports of European products, addressing the EU’s complaints about an uneven playing field and the politicization of the business environment. The EU and China plan a summit by year-end, with several high-ranking EU officials having visited recently.
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However, a survey conducted by the chamber revealed that participation rates have declined from 42% to 32% since the first CIIE. Those who chose not to attend this year after participating previously cited diminishing investment value and limited policy changes as reasons.
While 59% of survey respondents claimed to benefit from government engagement at the show, only a quarter of attendees closed business deals at last year’s CIIE, a significant drop from 2018 when half of participants closed deals.
European businesses would prefer the CIIE to focus more on business impact and implement concrete policy measures to open the market. More than 60 countries and three international organizations, along with 289 of the world’s top 500 companies, are participating in the CIIE, including firms like Micron, Nestle, and Burberry.
Last year, the CIIE witnessed $73.52 billion worth of “intentional” deals, marking a 3.9% increase. However, the European business community is looking for more substance and less spectacle in this annual event, seeking a greater focus on tangible results and practical business impact.