Economy

Proposal to block Chinese foreign investment faces uncertain future

Member states disagree on whether it is appropriate to create an EU mechanism to protect strategic sectors despite pressure exerted by the EU’s largest countries.

This article is part of our special report EU-China: Mending differences

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Macron may be softening up on eurozone reform to get Merkel's support. [Clemens Bilan/EPA]

Jorge Valero Euractiv 30-05-2017 06:20 5 min. read Content type: Euractiv is part of the Trust Project
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This article is part of our special report EU-China: Mending differences.

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Background

According to the European Commission, EU-China investment flows also show vast untapped potential, especially when taking into account the size of our respective economies. China accounts for just 2-3% of overall European investments abroad, whereas Chinese investments in Europe are rising, but from an even lower base.

The EU's concerns toward China are:

  • lack of transparency
  • industrial policies and non-tariff measures in China which may discriminate against foreign companies
  • a strong degree of government intervention in the economy, resulting in a dominant position of state-owned enterprises, and unequal access to subsidies and cheap financing
  • inadequate protection and enforcement of intellectual property rights in China.

The bilateral investment agreement under negotiations aims to provide more transparency, legal certainty, and market access to investors from both sides.

 

Timeline

  • 1-2 June: EU-China summit

Updated: 29-09-2024

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