December 31st local time, Zhan Xiaoning, Director of the Investment and Enterprise Division of UNCTAD, said in an interview with the China-EU Investment Agreement, which helps to realize the huge investment trade potential between China and Europe.
According to the United Nations Trade Organization, the EU is the third largest source of foreign direct investment in China and the fourth largest destination for OFDI in terms of bilateral FDI stocks. However, the share of bilateral direct investment in their respective total foreign investment and outward investment is still very low, and bilateral investment has great growth potential.
Once the China-EU Investment Agreement enters into force, it will not only play an important role in promoting bilateral investment, but also enable bilateral investment to drive the growth of bilateral trade and the further integration of industrial chains.
Zhan Xiaoning pointed out that the China-EU Investment Agreement is a new generation of investment agreements with high standards, forward-looking and sustainable development orientation, as measured by the criteria of the Global Investment Policy Framework of UNCTAD.
The China-EU Investment Agreement covers the core issues and elements of bilateral investment relations, including market access, fair competition rules, investment facilitation and dispute settlement mechanisms.
The agreement adopts a negative inventory approach to market access, and also incorporates the concept of sustainable development, covering areas far beyond traditional bilateral investment agreements.
In addition, the industry opening is very forward-looking, especially conducive to bilateral investment in emerging industries, such as renewable energy in China, the digital economy, new energy vehicles in the European Union and the health care industry.
Zhan Xiaoning said that the China-EU Investment Agreement represents a new generation of high-level international investment agreements and can serve as a model for the reform and upgrading of the IIA system.
It can be foreseen that the China-EU Investment Agreement will have an important impact on the negotiation of some important bilateral and regional agreements proposed globally.
The China-EU Investment Agreement and the new generation of investment and trade agreements such as RCEP jointly constitute the basic framework of the future global investment system.
In the current context of global protectionism and geopolitical tensions escalating, the CEIA helps to provide a transparent, stable and predictable business and investment environment for multinational enterprises, enhance their confidence, and plays an important positive role in promoting the global economic recovery after the epidemic.