The biggest European business group in China says Beijing needs to speed up economic reform and curb the dominance of state companies or risk facing an economic slowdown and a possible crisis.

The European Union Chamber of Commerce in China said Tuesday communist leaders need to make good on a reform agenda issued in late 2013 that promises to open more of the state-dominated economy to private and foreign competition.

The call comes amid concern Beijing is using anti-monopoly investigations to hamper foreign companies,

The chamber's president, Joerg Wuttke, said that with economic growth slowing, China "needs a whole new era of reform."

The group, which represents 1,800 companies, said needed changes include opening industries to competition, making regulation clearer and more predictable and reducing privileges for state companies.