Doing business in China? Find out what the implications of the new EU-China Investment Agreement are
In 2020, China has replaced the US as the EU's largest trading partner. This makes it all the more important for all parties involved to have fair regulations that favor trade relations. The investment agreement concluded between China and the EU on December 30, 2020, represents a very central basis for this. The Agreement goes by the abbreviation CAI (Comprehensive Agreement on Investment).
The comprehensive agreement in principle between the EU and China regarding investments (CAI) creates for European enterprises the basis to compete on an equal footing with local companies on the vast Chinese domestic market. This not only applies in relation to market access, but also to the conditions governing competition. These must be equal compared to those applying to domestic enterpriseses. Not addressed in the CAI is investment protection against state intervention. German and businesses from other EU countries with preexisting bilateral investment agreements may still invoke the corresponding provisions under these agreements.
Under the leadership of Dr. Hermann Knott the area of competence "International Business" of KUNZ Law presents in a detailed guide "New EU-China Investment Agreement (CAI) - Implications for German Companies Doing Business in China" the relevant contents of the CAI from the point of view of German and European companies.
You can read the business guide here: https://www.kunz.law/fileadmin/user_upload/NewNewNew_EU-China_Investment_Agreement__CAI__.pdf