The EU-China bilateral investment treaty: objectives, actual stage of negotiations and possible risks

This paper is based on three major motivations. First, its role is to emphasize that investment has become one of the pillars of EU-China bilateral relationship, although the value of two-way investment flows remain well below that of bilateral trade. Second, it reveals the main objectives of the European Commission in the negotiations for a bilateral investment Agreement with China. Three of them are common to classical investment agreements, however the fourth objective, representing, In fact, the main goal of the EU, is a novelty and is aimed at enabling EU investors entering the Chinese market by reduced access barriers. In its turn, China pursues two main objectives: clarity and transparency in investment relations with the EU, by replacing individual agreements with the existing one, along with gaining access to sensitive sectors in the EU. Thus, China can continue its process of investment diversification, which would facilitate access to famous brands, advanced technology and larger market shares in developed countries. Third, this analysis points out that the targets pursued by both China and the EU through this Agreement are difficult to achieve and there is still a long way to go before the conclusion and implementation of the EU-China bilateral investment agreement, taking into account not only the sensitive issues in the bilateral relationship, but also the need of ratification by national parliaments and approval by the European Parliament and the EU Council.