European chambers of commerce head wants to cement greater partnerships with Chinese counterparts, expand free trade
European businesses want partnerships with their Chinese and American counterparts to support free trade and globalization, says Christoph Leitl, president of the Association of European Chambers of Commerce and Industry (Eurochambres).
Eurochambres was established in 1958 in the wake of the creation of the European Economic Community. It represents over 20 million companies in Europe through 42 national associations of chambers of commerce and industry, two transnational chamber organizations and a European network of 1,700 regional and local chambers. Its member businesses employ more than 120 million people and more than 93 percent of members are small and medium sized enterprises (SMEs).
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Christoph Leitl described the future partnership for the world’s largest economies at Eurochambres’ headquarters in Brussels. Liu Jia / China Daily |
Talking at the chamber’s Brussels headquarters, Leitl, the Austrian veteran entrepreneur, who also serves as the chairman of the Global Chamber Platform, underlines that the business community must raise its voice to deal with difficult problems in trade and economic relations.
In earlier October, Leitl attended the Business 20 Summit in Argentina together with 1,700 other business leaders, 740 companies and 260 employers’ organizations. As an integral part of the G20 process, B20 is the voice of private sector representing the entire Group of 20 business community.
Global business representatives discussed a wide range of issues ahead of the G20 leaders’ meeting, focusing on multilateralism and free trade as well as concrete actions to promote economic and job growth.
Business groups are hoping that leaders can find common ground on trade and sustainable growth at the Buenos Aires G20 Summit at the end of November. Under the theme, “Building Consensus for Fair and Sustainable Development”, this year’s G20 Summit will highlight three key issues on the agenda: the future of work, infrastructure for development and a sustainable food future.
For one, the United States and China are expected to draw up a bilateral deal to resolve their escalating trade conflict at the summit.
“The framework will be made by the governments, but fulfilling that framework is the task of companies. We should share experiences and search solutions. The chamber has a big role to play,” Leitl says.
He believes such cooperation between commerce chambers will strengthen business confidence, which is crucial for building trust in economic partnership worldwide.
Leitl says that the Global Chamber Platform aims to facilitate economic cooperation, promote free trade initiative and develop a coherent answer to the challenges of globalization.
The GCP comprises 16 transnational commerce chamber federations worldwide. It has more than 100 million companies in its representation with over 1 billion employees. The China Council for the Promotion of International Trade and the US Chamber of Commerce are both members of GCP.
“Why don’t we work together – China, Europe, and the US? Me, as the European chamber, I am ready and I am convinced that chambers can contribute a lot to stability, free trade, prosperity and peace around the world. But we all have to contribute together,” says Leitl, who adds that there is a key role that SMEs in a more stabilized and peaceful world.
“SMEs are creating jobs, creating innovation and paying taxes. They are fundamental to our prosperity,” he says.
“We need multinational flagships. But it will not be successful without many boats around the flagships. The big ones have their tasks. But the small- and medium size businesses are those which are in the regional aspects. They are delivering jobs, perspectives. They are close to the people, close to the regions, they are close to the countries.”
According to a report by the Organization for Economic Cooperation and Development, “Enhancing the Contributions of SMEs in a Global and Digitalized Economy”, SMEs are the predominant form of enterprise, accounting for approximately 99 percent of all businesses in the OECD area. Besides, SMEs provide the main source of employment, accounting for about 70 percent of jobs on average, and are major contributors to value creation, generating between 50 percent and 60 percent of value added on average.
In emerging economies, SMEs contribute up to 45 percent of total employment and 33 percent of GDP on a yearly average, according to the report.
When taking the contribution of informal businesses into account, the report estimates that SMEs contribute to more than half of employment and GDP in most countries irrespective of income levels. In addition, SME development can contribute to economic diversification and resilience.
“What small and medium-sized companies want now is free trade. They need transparency and free trade. The chamber family is on the way to uphold free trade values,” Leitl says.
“I am always for dialogue and consensus because it is long-lasting and face-keeping. I am also aware that we have to respect cultural differences. The goal should be the same: working together. By working together, we are delivering prosperity around the world,” he says.
Leitl says globalization provides an opportunity for people to be part of global economic relations. “Globalization, for every single person, means additional chances and life perspectives. That’s what we should be dedicated to,” he says, adding that the world’s three largest economic powers – the European Union, the United States, and China – must be aware of their responsibilities to contribute to the development for the total world together.
“Europe is dedicated to all parts of the world, particularly to China. We know there are huge opportunities in China and also in Europe. I think we are good and reliable partners,” Leitl says.
As a frequent visitor to China, Leitl is a close observer of China’s Belt and Road Initiative. “Eurochambres is a partner for BRI. And I would really appreciate if the Belt and Road Initiative would not only be for big investments and big companies, but also for smaller ones,” he says.
When it comes to the EU’s latest comprehensive strategy to link Asia and Europe, Leitl says he expects that Europe and China’s cross-continental bridges could expand beyond Asia and Europe.
With China’s existing ties with Africa and Latin America, the new EU-China integrated initiative is likely to become a global strategy, he adds.
“I also see North America as interested. Canada is powerful and dedicated to the values of humanity. It’s not a guarantee for the future, but things are changing quickly,” he says.
“I’m optimistic that even the United States is recognizing the worldwide complexity of the economic system. Who is violating the system today is also damaging himself. That’s also what Americans are recognizing. Therefore, earlier or later, they will be a part of the positive global agreement.”
From his perspective, the United States is a place of innovation with a large number of top-ranking scientists and companies dedicated to developing global solutions.
“We should keep the global approach in mind. I’m optimistic that in future the US will be integrated as well, and the US will also be a partner we can rely on. They should be part of the global economic community,” he says.
(China Daily European Weekly 11/09/2018 page32)