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Summary: In 2020, which is fraught with uncertainty, the conclusion of the China-EU Investment Agreement reflects China’s determination and confidence to advance to a high level of openness, and has injected new impetus to global free trade and multilateralism .
On December 30, 2020, the leaders of China and the EU jointly announced the completion of the China-EU investment agreement negotiations as scheduled. In 2020, which is fraught with uncertainty, the conclusion of the China-EU Investment Agreement reflects China’s determination and confidence in advancing high-level openness, and has injected new impetus to global free trade and multilateralism.
China and the EU have always been a driving force for multilateral cooperation. The EU-China Strategic Outlook published by the European Commission in March 2019 noted that the EU and China have common interests in multilateralism, sustainable development, climate change, international peace and security and economic cooperation. The EU defines EU-China relations as “cooperative and negotiating partners, but also economic competitors and institutional rivals.” Since the EU’s relations with China are related to its fundamental interests for long-term development, the EU in general still seeks a pragmatic approach. Solve the problem instead of addressing the opposition to China.
The China-EU Investment Agreement is compared to high-level international economic and trade standards and focuses on institutional openness. The scope of the agreement goes far beyond traditional bilateral investment agreements, and the results of the negotiations cover four aspects: market access commitments, fair competition rules, sustainable development and dispute resolution. The promise of high-level market access will provide more investment opportunities for businesses on both sides, and high-level fair competition rules will provide a better business environment for bilateral investment.
Regarding market access, the agreement adopts a pre-access national treatment model plus a negative list model. China has always used post-access national treatment and a positive list model. For the first time, China has made a promise in the form of a negative list in all industries, including service and non-service industries, to achieve full integration with the foreign investment negative list management system established by the Law of Foreign investment. Many European companies in the manufacturing, construction, transportation, finance, telecommunications, IT, consulting and healthcare industries will enjoy better opportunities to enter China. The China-EU Investment Agreement will promote the openness of China and reduce barriers to investment. In the deal, the EU also promised China a higher level of market access.
In terms of fair competition, China and the EU are based on creating a business environment governed by the rule of law and reached consensus on issues closely related to business operations, such as state-owned companies, transparency of subsidies, technology transfer, standard setting, administrative law enforcement and financial supervision. Especially with regard to the issue of state-owned companies, EU competition law and other regulations traditionally do not discriminate whether the companies are state-owned or private, but emphasize fair competition. This will force China’s domestic reforms to deepen and play the role of “opening to promote reforms.”
In terms of sustainable development, the agreement contains special provisions on investment-related environmental and labor issues. Both parties will promote investments that lead to the achievement of sustainable development goals and will manage the relationship between attracting investment and protecting the environment and labor rights. China promises not to Reduce protection standards to attract investment and refrain from using labor and environmental standards for protectionist purposes. China will abide by relevant international commitments, such as China’s commitment to work for the effective implementation of the ratified Convention of the International Labor Organization.
In terms of environmental protection, China and Europe will effectively implement the Paris Climate Agreement. China has proposed that carbon dioxide emissions will peak before 2030 and will strive to achieve carbon neutrality by 2060. This year, the leaders of China and Europe also established the China-EU high-level dialogue on the environment. and climate and forged a China-EU green partnership. In the future, China and the EU will have room for active dialogue and cooperation in the field of sustainable development.
In terms of dispute resolution, the EU-China Investment Agreement includes a robust inter-state dispute resolution mechanism, much like the EU trade agreement. The agreement creates an institutional framework for monitoring compliance with commitments, including periodic political supervision, and incorporates an ad hoc mechanism for rapid participation at the political level when serious and urgent problems arise.
The conclusion of the China-EU Investment Agreement is a new milestone in the development of China’s globalization. It not only demonstrates China’s determination and confidence in promoting high-level openness to the outside world, but also actively promotes trade liberalization and investment facilitation, giving new impetus to economic globalization.
The conclusion of the China-EU Investment Agreement can promote the continuous development and improvement of the China-EU High-level Dialogue on Environment and Climate and the China-EU High-level Dialogue in the digital field, and promote the improvement of the China-EU Green Partnership and the China-EU Digital Partnership. In the EU-China Investment Agreement, commitments were made on market access in the areas of environmental protection services and new energy vehicles. In terms of communications, cloud services and IT services, restrictions on market access have also been reduced. This will help promote China-EU cooperation in the field of environment, climate and digital fields.
The conclusion of the China-EU Investment Agreement will also force China to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). On November 20 last year, President Xi Jinping declared at the 27th APEC Economic Leaders Meeting that China will actively consider joining the Comprehensive and Progressive Trans-Pacific Partnership Agreement. Joining the CPTPP means that China must be in line with internationally accepted rules in many respects, such as government procurement, subsidies, state-owned company operations, and labor standards. After the China-EU Investment Agreement is reached, China will raise standards in many respects, reform some parts that currently do not conform to international practices, and actively promote their entry into the CPTPP.
The conclusion of the China-EU Investment Agreement has made it easier for the world to form a situation in which China, the United States and the EU are in a three-pronged position, cooperating with each other and fighting without breaking. The greater integration of the three parties in investment, economy and trade will help to downplay the formation of an ideological united front. The agreement also favors a greater stabilizing role for the EU between China and the United States. The EU can act as a third party to coordinate conflicts between China and the United States, promote dialogue and cooperation between China and the United States, and convene a China-United States-EU tripartite meeting so that the three parties can discuss key issues such as the fight against the epidemic, the global health system and climate change. Initiate discussions to promote global governance reforms. (Wang Huiyao)
“Beijing Youth Daily” (Page 02 on January 3, 2021)
Publisher: Chen Yang
31952963,. The China-EU Investment Agreement reached an important step in China’s globalization. 2021-01-03 13: 27: 47, .204474,. Chen Yang
