EUROPEAN businesses want less protectionism and more fairness in trade and investment in both Europe and China, according a report released yesterday by the European Union Chamber of Commerce in China.

Both the EU and China should increase business involvement in policy-making, with European companies expecting to get involved in consultations leading to the release of China's 12th Five-Year Plan and continuing to increase direct dialogue with the Chinese authorities, according to the European Business in China Position Paper.

"The European Chamber is encouraged by repeated statements by senior government leaders assuring foreign-invested companies in China of being regarded and treated as Chinese companies," the report said. "The chamber is committed to working with the Chinese government through a results-oriented dialogue to achieve this equality."

The EU Chamber of Commerce in China has published the paper each year since 2000 to analyze the demand and concerns of European businesses in China. The report grew from last year's 584 pages to 647 pages this year, reflecting the increasing importance of the Chinese market.

"China has been instrumental in managing the global impact of the economic crisis and many European businesses have identified China as a key source of future growth," said Jacques de Boisseson, president of the chamber.

"But this optimistic view of China's current and future market potential is diluted by a growing frustration amongst the business community."

To cater for such concerns, Premier Wen Jiabao and other Chinese top officials have tried to assure foreign investors on many occasions that they are treated fairly and will continue to be treated fairly.

China unveiled new policies last month to better facilitate foreign investment, including discounts of land rents and the offer of research funds for encouraged foreign capitals.