Exclusive | China-EU investment deal: draft text shows Beijing to broadly open market to European firms, but some sectors remain off limits
- Draft of the EU-China investment deal shows improved market access for European firms in many parts of the Chinese economy
- But restrictions remain in key sectors like automotive, aviation and health care, with the agreement set to be finalised this week
An imminent investment treaty will crack open large swathes of the Chinese economy to European firms, but a recent version of the negotiating text suggests that Beijing intends to ensure some important sectors remain off limits.
Many firms in European industries including manufacturing, engineering, banking, accounting, real estate, telecoms and consulting stand to enjoy unrestricted access to the world’s second largest economy as part of the laboriously negotiated deal, which has gathered steam in the past two weeks.
This represents, at least partially, the hallowed “level playing field” sought by EU negotiators over seven years of talks, aimed at allowing European firms to compete fairly with China’s state-owned giants.
Their investments will be treated “no less favourably” than Chinese ventures in the same sectors, according to a December 16 version of the Comprehensive Agreement on Investment (CAI), reviewed by the South China Morning Post. Since this date, negotiations have proceeded swiftly.
While the draft is not final, it offers a glimpse into both parties’ negotiating positions, as well as China’s willingness to make concessions on market access and its red lines.
