Brussels, 05/06/2015 (Agence Europe) - The sixth round of EU/China negotiations for an agreement on investment, which was held from 2 to 4 June, focused on the EU's proposed text and achieving better familiarity with the respective approaches of each side, the Commission summed up at the end of the session.
This week, the talks covered the regulatory framework for investment in key sectors (financial services, postal services and IT services, sustainable development).
Negotiations for an EU/China investment agreement were launched in January 2014. The agreement sought, which will replace the 26 bilateral agreements on investment in place between the countries of the EU and China, aims to guarantee the legal protection of EU and Chinese investments (fair treatment and non-discrimination, compensation in the event of compulsory purchase and legal security) and to ensure reciprocal market access for EU and Chinese investors.
As regards market access, the EU wants to see restrictions on foreign investment on the Chinese market lifted, such as setup requirements (co-enterprises and stakeholding ceilings), sectorial investment bans by means of an 'investment catalogue', technological transfer and requirements of local content.
Both sides want to boost investment flows already punching well above their weight, given the level of integration of their economies. The trade in goods is massive (€467.2 billion in 2014, with €164.7 billion's worth of exports for the EU, and €302.5 billion for China) and the market for services is slightly on the up (€49.9 billion in 2013: €29 billion in exports for the EU, €20.9 billion for China). EU investment stocks in China stood at €127.7 billion in 2013, Chinese investment stocks in the EU at €25.5 billion. (Emmanuel Hagry)