CAI REACHED BETWEEN THE EU AND CHINA IN 2020
CAI REACHED BETWEEN THE EU AND CHINA IN 2020

Summary/Abstract: The study is about to compare the CAI between the EU and China in 2020 with its predecessor, the EU-China 1985 Bilateral BIT, and the Germany-China 2005 BIT in order to assess the effects of the CAI on FDIs and economic reciprocity. To fulfil this purpose, a comparative analysis of the three mentioned treaties is performed using the BMWK protection standards as comparison criteria. The new research aspect of this methodological proceeding is its assessment of the 2020 CAI on the basis of a comparison with prior treaties to evaluate the scope and meaning of the achieved agreement. The results of the comparative analysis elucidate that the 2020 CAI ameliorates marginally the framework for investments and market access between EU and China. Nonetheless, it is insufficient for facilitating FDIs of EU companies in China. China agreed to make relevant concessions in terms of environmental and labour standards, however, these do not compensate the persisting structural imbalance regarding market access between both parties.

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