Table of Contents
What does the EU-China deal mean?
EU, China Reach Agreement on Investments in Principle: What Does it Mean for Businesses. This means that China has committed to a greater level of market access for EU investors, including ensuring fair treatment for EU companies so they can compete on a more level playing field in China.
What does China get from EU deal?
The EU and China agreed on the deal in December after seven years of negotiations. Thomas explained that the benefits of the EU-China investment deal include improved market access for European firms in China, as well as better rules on subsidies, state-owned enterprises and technology transfer.
Why is the EU important for China?
The European Union and China are two of the biggest traders in the world. China is now the EU’s second-biggest trading partner behind the United States and the EU is China’s biggest trading partner. The EU is committed to open trading relations with China.
Will the CAI be ratified?
The recent tensions in the EU-China political relationship have, however, cast a shadow on the future of the CAI. At the moment, the ratification of the CAI is suspended in accordance with a decision rendered by the European Parliament in May 2021.
Does the EU have a free trade deal with China?
The European Union has concluded free trade agreements (FTAs) and other agreements with a trade component with many countries worldwide and is negotiating with many others….Negotiating new agreements.
| State | New agreement being negotiated | Status |
|---|---|---|
| China | EU-China investment agreement | Negotiations launched in 2013 |
Does Europe depend on China?
China is a key market for the EU but economic dependence remains limited. For many European companies, the Chinese market has been the major growth driver over the past decades.
What is the meaning of comprehensive agreement?
Comprehensive contracts are long-term, in-depth and detail-oriented agreements. The goal in creating a comprehensive contract is to write an agreement that will satisfy both parties, and won’t need to be revised or renegotiated.
What did European traders want China?
The Europeans of course were not shipping the silver to China as an act of donation or charity. They were getting goods in return, such as silk, porcelain, and later especially tea.
Why is the China-EU Cai so important?
In summary, the China-EU CAI is an important milestone event in the history of China-EU economic and trade cooperation, which will benefit not only China and the EU but also the world economic recovery and revitalization in the post COVID-19 era.
Do China and the EU have an agreement on investment protection?
No we have not. China and the EU take a clear commitment in the CAI to try to complete the negotiations on investment protection and investment dispute settlement within 2 years of the signature of CAI.
How big is the economic relationship between China and the EU?
In 2019, the combined GDP of China and the EU was USD 30 trillion, accounting for 34\% of total global GDP. In comparison, bilateral investment between China and the EU is relatively modest.
What is Cai and how does it work?
The CAI is an ambitious bilateral investment agreement covering diverse areas including market access, level playing field, sustainable development and dispute settlement. Both sides are now working towards finalising the text of the agreement, which will need to be legally reviewed and translated before ratification.