China’s amended anti-espionage and data laws threaten to spur decoupling with Europe by making it difficult for foreign companies to invest, according to a European business lobby group. The remarks from BusinessEurope, which represents commercial lobby groups from across the EU, come after China sought to allay growing concerns over the foreign investment environment last week with a memo ordering local authorities to cease discriminatory practices.

BusinessEurope deputy director-general Luisa Santos warned that new laws restricting data flows out of China, coupled with severe punishments for those charged under amended anti-espionage legislation, were concerning foreign investors. 

“If people are afraid you could be going to jail in China” by sharing data with Europe, then “you have to make some very difficult choices and this could effectively lead to the decoupling that we all want to avoid,” Santos said in an interview in Beijing.