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The Potential of EU-China Comprehensive Agreement on Investment
This article is dedicated to the exploration of the potential of the Comprehensive Agreement on Investment (CAI) currently negotiated between China and the EU. The trading and investment partnership between the EU and People’s Republic of China is one of the largest in the world with an enormous effect on the world’s investment flow. The scope of the agreement is comprehensive. It goes beyond traditional investment treaties and shall include market access clauses and other specific obligations.
Various countries compete for the widely recognized spill-over benefits resulting from the incoming foreign direct investment (FDI). Policies to attract and retain foreign investment have been massively adopted by various governments, who often invest substantial resources in the policies. Not so extensively explored are surprisingly the political risk and its influence on the investment decision-making. This is often subject to the efforts of states negotiating bilateral and multilateral treaties to improve market access and investment environment to reap the benefits of increased mutual investment activity.
Under the circumstances of a complicated US-China trade relationship and some US trade sanctions against the EU, the China-EU…
