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In a report released on Tuesday, the European Chamber of Commerce highlighted the urgent need to bring in economic reforms in China, in order to put international and domestic companies on an equal footing, Bloomberg reports.

Key Quotes:

“Urgent actions are needed to reduce the overwhelming dominance of state-owned enterprises, upgrade the overall regulatory framework, address issues of unequal treatment and better institute the rule of law.”

“Failure to act now will only lead to an escalation of the significant tensions that are building in the global economic system.”

“The general response from overseas businesses has been subdued, with several business leaders referring to it as, ‘too little, too late’.”

“International banks simply do not have the capacity to acquire a significant stake in Chinese banks, which are too big, completely dominant and entirely unlikely to give up such a stake anyway.”

“Requirements for unfair technology transfers remain a reality for many international businesses who want Chinese market access.”

“The consequences of not dealing with this longstanding issue are now being felt, with the EU announcing the launch of a WTO case against China’s unfair technology transfers.”