IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkpb/95.html
   My bibliography  Save this paper

The EU-China bilateral investment agreement in negotiation: Motivation, conflicts and perspectives

Author

Listed:
  • Bickenbach, Frank
  • Liu, Wan-Hsin
  • Li, Guoxue

Abstract

Since January 2014 China and the European Union (EU) have been negotiating a comprehensive bilateral investment agreement. In contrast to the EU-US negotiations on a Transatlantic Trade and Investment Partnership (TTIP), the ongoing negotiations between China and the EU have received little public attention so far. Still, a successful conclusion of these negotiations may be of great importance even beyond the EU-China investment relations. This holds in at least two respects. Firstly, a successfully concluded bilateral investment agreement may pave the way for a future EU-China free trade agreement. And secondly, looking beyond the bilateral relationship, the negotiations between the EU and China may make an important contribution to the establishment of a more liberal global investment framework. Currently, China is also negotiating an investment agreement with the US which is likely to take a similar form as that between China and the EU. In addition, provisions for the future liberalisation of bilateral investment flows are also an important part of the TTIP negotiations between the US and Europe. Rules and provisions, e.g., regarding market access, the prohibition of performance requirements or the transparency with respect to state-owned enterprises, that are part of all three agreements will "be elevated to a de facto global standard" (Berger 2014). Against this background, the present Kiel Policy Brief analyses the key barriers investors from China and the EU currently face in the EU and China, respectively and provides a brief assessment of whether and how these key barriers can be dealt with in the comprehensive EU-China investment agreement currently negotiated.

Suggested Citation

  • Bickenbach, Frank & Liu, Wan-Hsin & Li, Guoxue, 2015. "The EU-China bilateral investment agreement in negotiation: Motivation, conflicts and perspectives," Kiel Policy Brief 95, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkpb:95
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/121745/1/837867924.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mario Mariniello, 2013. "The Dragon awakes- Is Chinese competition policy a cause for concern?," Policy Contributions 799, Bruegel.
    2. Angela Huyue Zhang, 2012. "The Single-Entity Theory: An Antitrust Time Bomb For Chinese State-Owned Enterprises?," Journal of Competition Law and Economics, Oxford University Press, vol. 8(4), pages 805-830.
    3. Axel Berger & Matthias Busse & Peter Nunnenkamp & Martin Roy, 2013. "Do trade and investment agreements lead to more FDI? Accounting for key provisions inside the black box," International Economics and Economic Policy, Springer, vol. 10(2), pages 247-275, June.
    4. Berger, Axel & Busse, Matthias & Nunnenkamp, Peter & Roy, Martin, 2011. "More stringent BITs, less ambiguous effects on FDI? Not a bit!," Economics Letters, Elsevier, vol. 112(3), pages 270-272, September.
    5. Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
    6. Breznitz, Dan & Murphree, Michael, 2013. "Technology Standards in China," ETLA Brief 3, The Research Institute of the Finnish Economy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Langhammer, Rolf J. & Liu, Wan-Hsin, 2018. "China between external pressure and domestic policy reforms: In search of a balance," Kiel Policy Brief 117, Kiel Institute for the World Economy (IfW Kiel).
    2. Liu, Wan-Hsin & Langhammer, Rolf J., 2016. "China's growth challenges," Kiel Policy Brief 101, Kiel Institute for the World Economy (IfW Kiel).
    3. Nunnenkamp Peter, 2016. "Demokratie und internationale Investitionsabkommen: (Überraschende) Zusammenhänge und (lückenhafte) Erklärungen," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 17(4), pages 364-382, December.
    4. Frank Bickenbach & Wan-Hsin Liu, 2018. "Chinese Direct Investment in Europe – Challenges for EU FDI Policy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(04), pages 15-22, December.
    5. Johanna Garnitz & Ann-Christin Rathje & Ute Hannich, 2020. "China – Fair Play or Big Competition?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(02), pages 27-31, February.
    6. Curran, Louise & Lv, Ping & Spigarelli, Francesca, 2017. "Chinese investment in the EU renewable energy sector: Motives, synergies and policy implications," Energy Policy, Elsevier, vol. 101(C), pages 670-682.
    7. Suetyi LAI, 2023. "Not seeing eye to eye: perception of the China-EU economic relationship," Asia Europe Journal, Springer, vol. 21(2), pages 137-154, June.
    8. Wei Yin, 2021. "A comparison of the US and EU regulatory responses to China’s state capitalism: implication, issue and direction," Asia Europe Journal, Springer, vol. 19(1), pages 1-25, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julian Donaubauer & Eric Neumayer & Peter Nunnenkamp, 2018. "Winning or losing in investor‐to‐state dispute resolution: The role of arbitrator bias and experience," Review of International Economics, Wiley Blackwell, vol. 26(4), pages 892-916, September.
    2. Federico Carril‐Caccia & Elena Pavlova, 2020. "Mergers and acquisitions & trade: A global value chain analysis," The World Economy, Wiley Blackwell, vol. 43(3), pages 586-614, March.
    3. Xiong, Tingting, 2022. "The Effect of Bilateral Investment Treaties (BITs) on the extensive and intensive margins of exports," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 68-79.
    4. Aisbett, Emma & Busse, Matthias & Nunnenkamp, Peter, 2016. "Bilateral investment treaties do work: Until they don't," Kiel Working Papers 2021, Kiel Institute for the World Economy (IfW Kiel).
    5. Lay, Jann & Tafese, Tevin, 2020. "Promoting private investment to create jobs: A review of the evidence," PEGNet Policy Studies 02/2020, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW Kiel).
    6. Eric Neumayer & Peter Nunnenkamp & Martin Roy, 2016. "Are stricter investment rules contagious? Host country competition for foreign direct investment through international agreements," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 177-213, February.
    7. Nunnenkamp Peter, 2016. "Demokratie und internationale Investitionsabkommen: (Überraschende) Zusammenhänge und (lückenhafte) Erklärungen," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 17(4), pages 364-382, December.
    8. Josef C. Brada & Zdenek Drabek & Ichiro Iwasaki, 2021. "Does Investor Protection Increase Foreign Direct Investment? A Meta‐Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 34-70, February.
    9. Bellak, Christian & Leibrecht, Markus & Chaisse, Julien, 2022. "Reforming International Investment Agreements," Department of Economics Working Paper Series 328, WU Vienna University of Economics and Business.
    10. Christian Bellak & Markus Leibrecht & Julien Chaisse, 2022. "Reforming International Investment Agreements: The Case of China and Foreign Direct Investment," Department of Economics Working Papers wuwp328, Vienna University of Economics and Business, Department of Economics.
    11. Emma Aisbett & Matthias Busse & Peter Nunnenkamp, 2018. "Bilateral investment treaties as deterrents of host-country discretion: the impact of investor-state disputes on foreign direct investment in developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 119-155, February.
    12. Simon Hartmann & Rok Spruk, 2023. "The impact of unilateral BIT terminations on FDI: Quasi-experimental evidence from India," The Review of International Organizations, Springer, vol. 18(2), pages 259-296, April.
    13. Monika Sztajerowska, 2021. "International Investment Agreements, Double-Taxation Treaties and Multinational Activity: The (Heterogeneous) Effects of Binding," PSE Working Papers halshs-03265057, HAL.
    14. Markus Leibrecht & Christian Bellak, 2023. "Investment policy reform as a driver of foreign direct investment: Evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 1035-1053, October.
    15. Eckhard Janeba, 2019. "Regulatory chill and the effect of investor state dispute settlements," Review of International Economics, Wiley Blackwell, vol. 27(4), pages 1172-1198, September.
    16. Monika Sztajerowska, 2021. "International Investment Agreements, Double-Taxation Treaties and Multinational Activity: The (Heterogeneous) Effects of Binding," Working Papers halshs-03265057, HAL.
    17. Eichler, Stefan & Nauerth, Jannik A., 2021. "Bilateral investment treaties and sovereign default risk," CEPIE Working Papers 04/21, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    18. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    19. Dierk Herzer & Philipp Hühne & Peter Nunnenkamp, 2014. "FDI and Income Inequality—Evidence from Latin American Economies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 778-793, November.
    20. Amendolagine, Vito & Prota, Francesco, 2021. "Bilateral investment treaties and backward linkages in Sub-Saharan Africa," International Economics, Elsevier, vol. 165(C), pages 172-185.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkpb:95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.