EU-China deal can be important step to rebalance the relationship
Today the European Union and the People’s Republic of China announced the conclusion in principle of the negotiations on the Comprehensive Agreement on Investment (CAI). The agreement aims at increasing market access for investors and establishing rules that will improve the level playing field for European companies in China.
BusinessEurope Director General Markus J. Beyrer said: "In what concerns EU-China our priority is to rebalance the relationship, making it more beneficial for both sides. Improving the conditions for European companies to access and do business in China is critical to achieve this objective. Setting binding commitments regarding level playing field issues in important areas like state subsidies, forced technology transfers, climate and social standards is key to address current market distortions. We still need to assess the content of the agreement, but we are confident it will mitigate current unbalances in our bilateral relationship, bringing additional market access and legal certainty for our investors."
Besides provisions on market access, levelling the playing field and sustainability, the CAI should also include rules on the protection of investments.
"Increased market access should be equalled with a high level of protection for investments and a neutral and effective dispute settlement mechanism. The EU and China should also work to achieve an ambitious outcome in this area”, Markus J. Beyrer concluded.
