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.
«For this it needs to remain open.»
Dombrovskis's four-day trip, which kicked off Saturday, follows a report by the EU Chamber of Commerce that showed business confidence was at one of its lowest levels in years.
It also follows Brussels' decision to launch a probe into Beijing's electric car subsidies.
The investigation could see the EU try to protect European carmakers by imposing punitive tariffs on vehicles it believes are unfairly sold at a lower price.
Chinese Vice Premier He Lifeng on Monday reiterated Beijing's «strong dissatisfaction» over the probe.
«China once again expresses its high concern and strong dissatisfaction with the EU's plan to launch an anti-subsidy investigation into Chinese electric vehicles,» He told a joint press conference with Dombrovskis following their talks.
«We hope that the EU side will deal with that issue with caution and continue to maintain a free and open market,» he added.
But Dombrovskis painted a more positive picture of Monday's conversations, saying the two sides had agreed to «resume regular