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´╗┐EU urges China to ease pressure on foreign firms

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The European Union Chamber said in a statement Wednesday that it has heard "alarming" accounts from European companies that intimidation tactics are being used to force companies to accept punishment without full hearings.

Many say China regulators are responding to greater awareness that the prices in the country are a burden for consumers and that many goods are often sold at higher prices in China than outside the country. Past government probes, such as in the infant formula industry last year, resulted in companies lowering their prices.

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"The best thing Beijing can do to help the private sector is to take an ax to the bloated, inefficient and graft ridden state enterprise sector, and shatter the glass ceiling that prevents private firms from becoming the dominant players in any industry other than the Internet," Arthur Kroeber, of Beijing based consultancy Dragonomics, said in a report.

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"Competition law should not be used as an administrative instrument to harm targeted companies or serve other aims, such as administratively forcing price reductions," said the chamber, which represents 1,800 member companies in China.

Land Rover PLC, to cut prices.

In recent months, Chinese antitrust officials have employed a six year old antimonopoly law to put foreign businesses under increasing pressure, launching probes of companies ranging from car makers Audi AG and Daimler AG Mercedes Benz to technology companies Microsoft Corp. and Qualcomm Inc. Jaguar Nike Lebron Soldier 10

The European Chamber said in its statement it supports China goal to correct market problems but that government deregulation would be preferable.

Sheng Jiemin a law professor at Peking University.

China has said it treats domestic and foreign companies equally. The Ministry of Commerce and the National Development and Reform Commission didn respond to requests for comment to the European Chamber Nike Zoom Lebron Soldier 10 Sfg Lux statement.

The call comes as foreign businesses have come under pressure in China, where regulators are attempting to level the corporate playing field by using antitrust laws against multinational companies. The auto sector in particular has been under government watch, with regulators launching probes of anticompetitive behavior.

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The European Union Chamber of Commerce urged China to ease action taken against foreign companies and to impartially impose corporate laws to boost competition in the country.

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Some in the Chinese business community say that the government actions are justified. "Nearly every government Nike Metcon Grey Wolf

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