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The EU's trade chief told Beijing on Monday that tough security laws and a more "politicised" business environment have left European companies struggling to understand their obligations and questioning their future in China.

China's refusal to condemn ally Russia for its war in Ukraine also poses a "reputational risk" for the world's second-largest economy, Trade Commissioner Valdis Dombrovskis said in a speech at Beijing's Tsinghua University.

He said transparency and openness were "a winning strategy in the long run," at a time when trade tensions between the European bloc and China are mounting.

"China is navigating a challenging transition from an investment-led economy to a broad-based economy," he said.


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