EU Commission finalizes investment agreement with China

Posted on January 11, 2021   |  

  • The agreement signifies the intention of the EU and China to continue to deepen economic relations.
  • Through the agreement, the European industry will gain better access to China’s enormous domestic market.
  • However, the agreed text of the agreement only concerns market access, with investment protection still left to be negotiated in a future agreement.
  • Chinese foreign direct investment (FDI) into the EU has increased exponentially over the last few years, amounting to almost 120 billion euros ($146 billion) between 2017-2020, primarily directed towards the strategic areas of infrastructure and high technology.
  • EU investment into China was even higher, at more than 140 billion euros ($171 billion).
  • About half of EU FDI in China is in the manufacturing sector, with the German automotive industry as the main investor.



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