Bilateral Investment Agreement Eu China

Bilateral Investment Agreement Eu China

This would not be the first time that a Sino-US bilateral agreement has hampered efforts between the EU and China to achieve their trade goals. For example, it took China two years to remove the objections mainly raised by the US (the legitimate right of a third party) to conclude the agreement on cooperation and protection of geographical indications between the EU and China. Nor would it be the first time that the EU and the US have competed for access to china`s financial markets. The fact that it is still under negotiation indicates that china-EU relations still have a long way to go to reach common ground. If the agreement is signed, it will be a turning point in their bilateral investment relations. Summary: Since January 2014, China and the European Union have been negotiating a comprehensive bilateral investment agreement. Unlike the EU-US negotiations for a Transatlantic Trade and Investment Partnership (TTIP), the ongoing negotiations between China and the EU have so far received little public attention. Nevertheless, a successful conclusion of these negotiations could also be very important beyond the investment relationship between the EU and China. This is the case for at least two aspects. Firstly, a successful bilateral investment agreement could pave the way for a future free trade agreement between the EU and China.

Secondly, the negotiations between the EU and China, beyond bilateral relations, can make an important contribution to the creation of a more liberal global investment framework. China is also negotiating an investment deal with the US, which is likely to take a form similar to that between China and the EU. In addition, provisions for the future liberalization of bilateral investment flows are also an important element of the TTIP negotiations between the United States and Europe. Rules and provisions, for example. B relating to market access, the prohibition of performance requirements or transparency vis-à-vis the public undertakings that are part of the three agreements, are “de facto erected as a global standard” (Berger 2014). In light of the above, this policy letter from Kiel analyses the main barriers currently facing Chinese and EU investors in the EU and China and provides a brief overview of how these main obstacles can be addressed in the EU-China Comprehensive Investment Agreement currently under negotiation. Some progress has been made recently in the ongoing bilateral negotiations on trade and investment. . . .


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