The euro crisis in 2010 led to a "Scramble for Europe" as indebted EU member states - especially in the so-called periphery - desperately for investment, especially in its sovereign debt and infrastructure. But since then, the race for Chinese investment has spread from the periphery to the center. The UK leads the race, and even France now intends to Chinese investment in infrastructure - for example, in December 2014, the French government announced the sale of a 49.9 percent Toulouse airport a Chinese consortium, with Lyon supposed to follow.
This makes it even more urgent for the EU to sign a Bilateral Investment Treaty (BIT) with China. China, which prefers to deal bilaterally with Member States of the EU, was until recently reluctant to accept the treaty. However, the appearance of a series of mega-trade deals such as trade and investment Transatlantic Partnership (TTIP) seems to have changed the minds of China. As China's long-term "go-global" strategy changes the producers of resources to developed markets - and the renminbi becomes stronger each time -China has to invest in Europe.
"The European interest in an investment treaty with China" by Francois Godement and Angela Stanzel, explores what Europeans have leverage to negotiate the BIT long wanted to China.
The authors note that:
The competition between Member States directly affect the negotiations bit, decreasing the influence of the EU and China can play in bilateral relations whenever discussions in the EU seat. Europe must now convert this disunity in a common negotiating position.
The key priorities of the European Union must have settlement mechanism investor-state dispute under the BIT, and to improve access to European companies have in the Chinese market, which currently remains limited. Furthermore, the EU should prioritize transparency of capital flows and the identity of investors in negotiations TBI.
The EU needs to maximize its influence in the negotiations. The EU has a positive influence, as the financing of special bonuses to attract Chinese investment in the EU and national infrastructure projects. The EU should also use its negative influence, and demonstrate that China can do without moving forward with other FTAs, starting with Japan, and TTIP.
In the letter, write:
"Like the EU, China is a global actor's trade and investment negotiations can not be considered in isolation from movements with third Chinese economic agents -.. From state enterprises become multilateral companies, sovereign wealth funds or private actors more scattered - are in a decisive phase of the internationalization of capital as China maintains a large current account surplus China can not sustain the past pattern of large payouts at the right time for the European economy, while improving access. direct European companies to the Chinese market. "
TheChinaInvestors is the world's #1 funding and investments network for Chinese Investors and Global Investees.