China urges the European Union to provide a fair, transparent and non-discriminatory business environment for Chinese companies, and to avoid harming the confidence of these companies in their investment in Europe, Chinese foreign ministry spokesperson Lin Jian said in Beijing on Tuesday.

Lin made the remarks when responding to the European Commission's reported exploration of ways to force EU member states to phase out Huawei Technologies and ZTE Corporation from EU telecom networks.

Lin noted that Chinese companies have been doing business in Europe in accordance with the law, provided quality products and services to the European people, and made contributions to local socioeconomic development and employment.

Limiting or banning companies' access to the market through administrative means without any legal grounds or factual basis severely violates market principles and the rules of fair competition, Lin said.

In a handful of countries, the facts have demonstrated that the removal of Chinese telecom companies' secure and quality equipment not only impedes their domestic technological development, but also results in heavy financial losses, he noted.

"Turning trade into security and political issues will hinder technological progress and economic growth, and will do no one any good," he added.