Comprehensive Agreement on Investment between the EU and China

On 30 December 2020, an initial outline of the EU-China Comprehensive Agreement on Investment was published. In principle, many EU trade and industry sectors take the view that the document represents significant potential for improvement. In practice, however, there need to be more provisions to ensure a level playing field for businesses in the two economic areas so as to combat Chinese overcapacity in some sectors (which often distorts global markets), state interference in the management of private companies involving competition-distorting State aid, and provisions governing EU access to public procurement in China. The proposal has emerged against the backdrop of extensive infringements by China of WTO rules, and, more generally, systemic differences between the two economic and legal systems.

• 1. Does the Commission take the view that this initial text contains sufficient guarantees to iron out the distortions?
• 2. Could the agreement undermine the EU’s foreign investment screening mechanisms, the foreign subsidies instrument or the international procurement instrument?

Last updated: 11 February 2021