ABSTRACT

This chapter provides an overview of the state of negotiations and analyses the motivations of the parties and the main contentious issues in the negotiations of the China–European Union (EU) Comprehensive Agreement on Investment (CAI). It also provides a background of the changes of the institutional basis for the EU international investment policy in the wake of the Treaty of Lisbon reform. The chapter presents an overview of the 26 bilateral investment treaties that China has negotiated with EU member states and highlights the need to consolidate the agreements and assesses the motivations of China and the EU with regard to the CAI. The China–EU CAI, for example, would replace the existing 26 bilateral treaties signed between China and the EU member states. The joint decision to negotiate the CAI between China and the EU dates back to the 15th China–EU Summit in February 2012.