Eu China Investment Agreement Negotiation

kenty9x | December 8, 2020 | 0

Finally, the EU-China agreement on China`s accession to the WTO (19 May 2000) concluded that, although China would maintain the 50-50 ceiling, China would offer a legal guarantee to avoid prudential interference in private contracts between life insurance joint venture partners. China immediately granted seven new licences for European life and life insurers. In addition, insurance activities were opened to foreign companies two years earlier than in China`s China-U.S. WTO accession agreement, and foreign brokers were allowed to operate in China five years after accession, without any joint venture requirement. The lack of reciprocity in access to the Chinese market and the lack of a level playing field for EU investors in China have posed major challenges to the EU-China investment relationship in recent years, as the negotiation of a Comprehensive Investment Agreement (IAC) is seen by the EU as a key instrument to remedy this situation. Summary: Since January 2014, China and the European Union (EU) have been negotiating a bilateral comprehensive investment agreement. Unlike the NEGOTIATIONs between the EU and the US on a Transatlantic Trade and Investment Partnership (TTIP), the ongoing negotiations between China and the EU have so far received little public attention. Nevertheless, the success of these negotiations could be of great importance, even beyond the investment relations between the EU and China. This applies in at least two cases. First, a successful bilateral investment agreement could pave the way for a future free trade agreement between the EU and China. Second, beyond bilateral relations, eu-China negotiations could make an important contribution to the creation of a more liberal global investment framework.

At present, China is also negotiating an investment agreement with the United States that is likely to take a similar form 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, such as .B market access, prohibition of performance requirements or transparency with respect to state-owned enterprises that are part of these three agreements, are “de facto brought to a global standard” (Berger 2014). In this context, Kiel`s current policy letter analyses the main obstacles currently faced by EU and EU investors in the EU and China, and provides a brief assessment of how these key obstacles can be contained in the EU-China Comprehensive Investment Agreement, which is currently under negotiation. It is clear that the EU and China represent a significant share of the other`s market; The conclusion of the AI is therefore in the interests of both parties. On the Chinese side, China has not yet granted domestic treatment to foreign companies, one of the wto`s fundamental principles, as promised. Some of the market opening measures recently implemented under the Foreign Investment Act, which came into force in 2020, such as participation in domestic industrial policies, programmes and public procurement, are granted to foreign companies – not foreign companies per se. More importantly, although China has argued in recent years for talks for a free trade agreement with the EU, it is important to remember the two preconditions of the EU: “a good result” with regard to IACs and China`s progress on reforms that give the market a more decisive role. , including a level playing field. Therefore, the conclusion of the IAC will be crucial for China in order to advance its trade ambitions. On Wednesday, Washington and Beijing reduced their 18-month trade dispute that has affected global economic growth by signing an initial agreement in which China will boost U.S.

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