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Jürgen Matthes in IN BRIEF External Publication 18. September 2020 For a More Robust Approach Towards China in European Trade and Investment Policy

China’s overall concessions in the CAI have so far fallen short of the EU's expectations. Apparently, Beijing will not move sufficiently on the issue of competitive distortions without more negotiation pressure.

For a More Robust Approach Towards China in European Trade and Investment Policy
Jürgen Matthes in IN BRIEF External Publication 18. September 2020

For a More Robust Approach Towards China in European Trade and Investment Policy

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German Economic Institute German Economic Institute

China’s overall concessions in the CAI have so far fallen short of the EU's expectations. Apparently, Beijing will not move sufficiently on the issue of competitive distortions without more negotiation pressure.

The EU should therefore choose a more robust approach and align even more with the US in this respect. More concretely, Brussels also needs to take unilateral action - in order to increase China’s incentives to engage, but also to prepare for a further increase in the global spillover of Chinese competitive distortions. However, in contrast to the US approach, European unilateral actions have to remain within the remit of WTO rules.

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