Market access for investment and services under the EU–China comprehensive agreement on investment: an appraisal

ABSTRACT The EU–China Comprehensive Agreement on Investment (CAI or the Agreement) is a politically win-win deal for the EU, driven by the urgency of addressing asymmetries of its investment relationship with China, and China, which wants to safeguard the EU’s openness to its investors. Economically, however, the impact of its market and liberalization offers remains to be seen admit the increased geopolitical tension between the EU and China. Still, Section II of the principally agreed text of the CAI supports the case for rule-based investment liberalization, advocating a level playing field for investors, mainly EU investors in China. At the same time, given its predominant emphasis on market access for investment, the Agreement stands out amongst investment treaties that principally concentrate on investment protection. Similarly, it is unique among Chinese investment treaties that do not (firmly) provide for market access for investment, marking a further step in the EU’s emergent investment treaty-making practice that focuses beyond investment protection.