Challenges, issues in China-EU investment agreement and the implication on China's domestic reform. Issue 2 (3rd July 2018)

• Record Type: Journal Article
• Authors: Yin, Wei
• Is Part Of: Asia Pacific law review. Volume 26:Issue 2(2018)
• Page Start: 170
• Page End: 202
• Publication Date: 2018-07-03
• Subjects: China-EU bilateral investment treaty (BIT) -- market access -- sustainable development -- state-owned enterprises (SOEs) -- China's domestic reform; Law -- Asia -- Periodicals; Law -- Oceania -- Periodicals; Law; Asia; Oceania; Recht; Periodicals; Electronic journals; 349.5
• DOI: 10.1080/10192557.2019.1576347
• Languages: English
• ISSNs: 1019-2557

Abstract

ABSTRACT: The European Union (EU) and China, as influential economic powers, are engaging in the negotiations of a Comprehensive Agreement on Investment (CAI), which if successful will likely be a high-level standardised investment treaty in a new era. Although the CAI provides China and the EU an opportunity to solve their respective concerns, it presents challenges for both sides. This paper attempts to elaborate the key issues involved in the negotiations, especially from the Chinese perspective. Specifically, this paper addresses two main questions: what are the key issues in China-EU CAI negotiations and how can China address these challenges? What is the implication of the CAI on China's further domestic reforms? After the analysis of relevant factors, it concludes that although tough issues need to be addressed in the CAI negotiation, a mutual understanding of their respective values and interests and an improved regulatory regime in China are necessary in promoting China-EU investment cooperation. The issue of reciprocity shall not be addressed by unilateral discriminatory measures, but relying on a bilateral approach with mutual understanding, complemented by progress in China's reforms.