China and the EU have agreed on a future-oriented investment agreement. The Minister of Economic Affairs speaks of a “milestone”.
After seven years, the EU was able to reach a political agreement on the conclusion of the investment agreement with China. Better market access, a level playing field and sustainability make up the three core elements of the agreement. Austria's Minister of Economic Affairs Margarete Schramböck welcomes the agreement and says in a broadcast:
Alongside the USA, China is Austria's most important trading partner. This close economic exchange with China also safeguards many jobs in Austria. The aim of the agreement is to enable European companies to invest in China more easily and on fairer terms. “Our companies also benefit from this, because Austrian companies are among the most important European investors in China.”
The agreement particularly benefits those areas in which Austria is well positioned. For example, EU companies will be able to participate in the Chinese renewable energies market to the same extent as Chinese companies in the EU market. “This agreement opens up new opportunities in one of the most important future markets with 1.4 billion people,” said Schramböck. With regard to financial services, the EU gets the same market access as was granted to US companies in Deal I with China.
In order to create a level playing field, the EU has obliged China to refrain from forced technology transfer. In addition, an agreement was reached on subsidy disciplines and on state-owned companies. These rules will go a long way towards bringing the conditions of competition between China and the EU closer.
A very great achievement is the anchoring of sustainability and labor rights. That was a central condition of the EU. “The importance of this concession cannot be emphasized enough. This is a milestone,” said Schramböck in the broadcast. This political agreement will be followed by a submission of the full text of the agreement and its signature by the EU Council.
