EU, China signs Comprehensive Agreement on Investment
After 7 long years of negotiation, on the 30th of December 2020, the EU and China reached an agreement on investment in principle. This agreement is said to be the most ambitious one that the latter has ever concluded with a third country- it is termed the Comprehensive Agreement on Investment (CAI). Key players who played a role in this historical moment include President Xi Jinping of China, Chancellor Angela Merkel of Germany, President Emmanuel Macron of France, as well as President of the European Council and of the European Commission.
Outline of the CAI
All parties concerned seem to be on the same page regarding key principles and milestones to be regulated by the agreement. Both parties reasserted their obligation towards the UN’s Charter and the fundamentals mentioned in the Declaration of Human Rights under the preamble of the agreement. It also included a promise from both parties to ensure environmental and labor rights’ protection in their undertaking.
The agreement goes on to shed light on the following aspects of the collaboration:
– Investment liberalization and market access
– Equal playing field
– Domestic regulation
– Sustainable development
– Institutional and final provisions
– Transparency in standard-setting
– Dispute settlement mechanism
– Financial services
Therein, China will allow greater market access for EU investors, with the promise of fair treatment, so the competition remains just in China. The agreement has also highlighted rules governing the forced transfer of technologies, transparency of subsidiaries, and state-owned enterprises.
Negotiations on the CAI started back in 2013, when investors on both sides demand access to EU and China markets, guaranteeing that their investments would be protected. In fact, deliberations over sustainable development and market access ran on even in December 2020. However, days before years end, the parties in question managed to reach a political agreement.
The agreement serves as a turning point in EU-China relations. With Joe Biden soon to be in the Oval Office, this change couldn’t have come any sooner. However, even after 7 years, the parties have merely traversed the first part of the process. For the agreement to be ratified, all parties involved must be ratified- and we know just how many deals have fallen through at this stage. It often even takes years for states to ratify deals.
We, however, remain hopeful to see newly improved relations between the EU and China.
More in Global
Thinking About Buying An SUV? Here Are The Best Ones On The Market You Might Not Know About
SUVs are probably the most popular cars at the moment, as they offer luxury, safety, space, and flexibility. As they can...August 26, 2021
The Most Common Types Of Psoriasis And How To Fight Them
People who have psoriasis know all too well how this condition can be detrimental to their health and body image. From...August 26, 2021
Everything You Need To Know To Find The Best Crossover SUV Deals Out There!
Crossover SUVs are now the hottest four-wheeled rides, and there are plenty of good reasons why they are becoming increasingly popular....August 26, 2021
Dental Implants Can Change Your Life – But How Expensive Can They Be?
Human teeth are not only vital for survival; they are an important part of our self-esteem. Teeth are one of the...August 26, 2021
Experiencing Unexplained Joint Pain? Here’s What Could Be Causing It And How To Treat It
No matter the age, it is never too early to start taking care of your health preemptively. Of course, if someone...August 26, 2021
Looking To Buy An RV For Your Next Vacation? Here’s All You Need To Know!
With hotel room prices going up in the last couple of years, more and more people are looking for different ways...August 25, 2021
Here Are The Best Homeschooling Programs For Improving Your Kids Education During Lockdown
With the pandemic still in full swing, safety is a priority during these stressful times. But no matter the cost when...August 25, 2021
How To Find The Best Crossover SUV Deals On The Market
You’ve probably noticed that crossover SUVs are some of the most popular vehicles in the United States. They’ve replaced the once-popular...August 25, 2021
Your Go-To Guide For Picking Coffins And Caskets
However tragic an event like a funeral might be, family and friends always want to in the best for their loved ones,...August 24, 2021