Impacts of the EU-China Comprehensive Agreement on Investment

By SME Europe

The recently signed political agreement in principle on the EU-China Comprehensive Agreement on Investment (CAI) can be an important development in the overall China strategy of the EU. This agreement could help in rebalancing the relationship, bringing significant gains for EU businesses and investors in market access, level playing field and competitive neutrality. Moreover, the agreement has good language on sustainable development and hence supports the EU’s values-based agenda.
However, CAI must be worth more than the paper it is printed on. The true added-value of this agreement will depend on its effective implementation and proper enforcement. The discussions will thus focus on this vital aspect, as well as tapping into the expectations and possible concerns of European business associations and SMEs.