As far as investment is concerned, the pending eu requests to China and the conditions under which the EU will sign the CAI are as follows: these agreements have become possible because China has shown greater political will – without breaking the bilateral agreement between China and the US on China`s accession to the WTO – and the EU has exercised trade pragmatism, accepting further concessions inside and outside the financial sector. Can this formula once again use its magic to help the EU and China agree on access to financial markets before the conclusion of the CAI? Once concluded, the agreement should be ratified by all EU Member States before entering into force. The European side remains cautious and is also testing Beijing`s limits to make concessions. “If we want to achieve our common goal of concluding the negotiations this year, China needs to convince us that it is worth having an investment agreement,” von de Leyen said. “The talks are now in a critical phase, we expect the EU to expect China to be pragmatic and constructive, so that we can address the outstanding issues and reach a comprehensive, balanced and high-level agreement by the end of the year,” Zhang said. Finally, the EU-China Agreement on China`s accession to the WTO (19 May 2000) concluded that, although the ceiling of 50 to 50 own funds is maintained, China offers a legal guarantee to avoid regulatory interference in private contracts between life insurance joint venture partners. China immediately granted seven new licenses to European life and non-life insurers. In addition, insurance businesses were opened to foreign companies two years earlier than the WTO`s Sino-US agreement on China`s accession to the WTO, and foreign brokers were allowed to operate in China five years after joining, without any need for a joint venture. Nearly a decade has passed and, although some progress has been made, many tensions remain. Today, EU officials are clearly showing that the prospects for reaching an agreement by the end of the year – a delay that Agatha Kratz, deputy director of the Rhodium Group research centre, described as “hopeless” are slim.
European Commission President Ursula von der Leyen recently said after a high-level dialogue with Chinese President Xi Jinping: “China needs to convince us that it is worth having an investment deal.” And the EU is preparing to set up mechanisms for reviewing and limiting foreign investment in Europe that would operate independently of the CAI. At a summit yesterday (1 October), a minute before midnight, European Union leaders issued a statement calling for a fairer and more reciprocal economic relationship with the world`s second-largest economy. They also stressed that it is time to negotiate an eight-year investment agreement that, among other things, will address some of the EU`s concerns about market access for its companies in China and the transparency of Chinese state-owned enterprises. However, experts warn that the agreement will be less and less concluded. . . .