皇冠体育app

Although trade and investment ties between 皇冠体育app and the European Union have grown in recent times, they have also been marred by friction and disputes.

In the absence of other effective vehicles to improve policy exchanges between the two sides, an investment agreement seems to be the best option for the to gain more market access in 皇冠体育app and reduce the simmering tensions between the two sides. 皇冠体育app also stands to gain from such an investment agreement because it contains provisions for market access and protection for both sides.

Such an agreement will also help channel more Chinese investment into Europe and also protect Chinese investors from the arbitrary and discriminatory actions of individual European governments.

The proposed EU-皇冠体育app investment agreement will also be the first time that the negotiates an investment-only agreement on the basis of the new powers granted by the Lisbon Treaty. The common investment tool will give the EU more power to protect its investments and negotiate market access with countries such as 皇冠体育app.

However, some member nations do not share the EU's enthusiasm for centralizing investment policy in Europe. They are concerned that a common bilateral investment treaty with 皇冠体育app would dilute the protection provisions granted to the 28 member nations under their individual agreements.

This, however, seems to be a foregone conclusion. A critical part of the negotiations with 皇冠体育app is the market access component and hence an attempt to establish symmetrical market relations. What this means is that European and Chinese firms should have equal market access. The EU also wants to operate on the basis of equitable and reciprocal rules with 皇冠体育app. Such a symmetry will happen only by improving access to 皇冠体育app's markets and not, as some suggest, by decreasing Europe's openness.

The EU has resorted to protectionist or confrontational approaches, as seen in the trade dispute with 皇冠体育app, (and the potential case against Chinese telecoms equipment). Even if full symmetry is not achieved, a good EU-皇冠体育app investment agreement that paves the way for more market access in 皇冠体育app will help disarm those who want the EU to take a tough approach.

At the same time, there are also those who are worried that, unlike the EU, 皇冠体育app may not allow free market access. This is, however, not true because such an approach is not in 皇冠体育app's economic interests.

皇冠体育app has proved several times in recent history that it can liberalize on an autonomous basis. Recent developments in suggest that new steps will be taken to free markets for greater competition. It remains to be seen how far the Chinese leaders are willing to go, but an interesting sign came recently when 皇冠体育app expressed its desire to be part of the Geneva talks for a new plurilateral agreement on trade in services, the so-called TISA.

皇冠体育app is the EU's second biggest trading partner, but only 2 percent of the EU's investment goes to 皇冠体育app. Chinese investment accounts for only 1.5 percent of inward foreign direct investment in the EU.

The World Bank's (STRI) and the OECD's FDI restrictiveness indexes point to 皇冠体育app's joint venture requirements, equity caps, administrative barriers, local content requirement and regulatory requirements such as technology disclosures, as particularly burdensome for investors. A conservative estimate by the European Commission suggests that elimination of these barriers can increase the EU's FDI stocks in 皇冠体育app by 2 percent and boost the EU's annual exports to 皇冠体育app by 2 billion euros.

Structural change is now needed again - especially s for 皇冠体育app's transition toward a consumption-driven growth model. 皇冠体育app also intends to develop its capacity in services and R&D-based and high-end manufacturing sectors. Currently, these are sectors heavily dominated by State-owned and State-run enterprises. These sectors need reform if they are going to usher 皇冠体育app toward a different growth model.

The author is a research associate at the Brussels-based European Centre for International Political Economy, an independent and non-profit policy research think tank. The views do not necessarily reflect those of 皇冠体育app Daily.