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The European Union-China Comprehensive Agreement on Investment binds Chinese liberalisation of its foreign investment regulations under an international treaty and includes improvements on subsidies, state-owned enterprises, technology transfer and transparency.

The authors are grateful to Bruegel colleagues and to Petros Mavroidis for helpful comments, and to Mia Hoffmann for superb research assistance.

The European Union is very open to foreign direct investment. By comparison, despite considerable liberalisation in the past two decades, foreign investors in China’s markets still face significant restrictions, especially in services sectors. Given this imbalance, the EU has long sought to improve the situation for its companies operating or wanting to operate in China.

By: Uri Dadush and André Sapir.

Date: April 13, 2021 Topic: Global Economics & Governance.

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Source: Bruegel:

Recommended citation

Dadush, U. and A. Sapir (2021) ‘Is the European Union’s investment agreement with China underrated?’ Policy Contribution 09/2021, Bruegel

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