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New EU and China investment deal

New EU and China investment deal

The European Union and China negotiated the agreement for almost seven years. The initial investment agreement between countries will facilitate mutual market access for investors from both regions. However, Reuters announced that it will take approximately a year to agreement enter into force.

Talks were stopped in 2014 after Brussels complained that China was not living up to its promises to limit EU investment in its market after Beijing promised to open its economy.


Agreement gives the possibility for European companies to operate in China in sectors such as electric cars, private hospitals, real estate, advertising, maritime transport, telecommunications cloud services, ticket reservation system and ground handling. Some requirements that companies must operate in a joint venture with a Chinese partner will be removed.


Big move for China is promising that will be more transparent on subsidies and to ban state-owned companies from discriminating against foreign investors. Plan is also to ban the forced transfer of technology from foreign companies.


“We expect European businesses will have more certainty and predictability for their operations,” said Valdis Dombrovskis, the EU’s trade commissioner. “We have some very welcome changes to the rules of the game because, for a long period, trade and investment relations with China have been unbalanced.”