Biblid: 1451-3188, 21 (2022)
Vol. 21, No 80, pp. 93-105
Received: 02 Oct 2022
Accepted: 01 Nov 2022
COMPREHENSIVE AGREEMENT ON INVESTMENTS BETWEEN THE EUROPEAN UNION AND CHINA
DIMITRIJEVIĆ Duško (Institut za međunarodnu politiku i privredu, Beograd), email@example.com
Since the entry into force of the Treaty of Lisbon in 2009, the European Union has initiated intensive negotiations to achieve fairer solutions on free trade with China. Since China is not only the most important trade partner of the European Union but also its systemic rival, whose investments in critical assets, technologies, and infrastructure carry certain security risks, the European Union concluded the negotiations with China on the Comprehensive Investment Agreement on Investment on December 30, 2020. The agreement should end the validity of existing bilateral trade agreements and provide greater legal certainty and, thus, a healthier economic environment within the EU. The agreement envisages free and equal access for European investors to the Chinese market while providing adequate legal guarantees on national treatment and the abolition of quantitative and capital restrictions. Equalizing business conditions and establishing new rules for investments by state-owned Chinese companies in the European Union with respect for international labour, technological, and environmental standards, as well as greater transparency of state subsidies, could lead to an improvement of mutual trade relations. Based on the stated assumption, the author of the study believes that it is possible to find appropriate solutions that would reduce the risks caused by political disputes leading to the suspension of the ratification process of the Comprehensive Agreement on Investments at the expense of legitimate interests in achieving mutually sustainable economic development.
Keywords: EU, China, Comprehensive Investment Agreement, mutual sustainable development, risks