The Real Significance of a China-EU Investment Treaty

On 18 October the European Union member states are set to pass the mandate for the negotiation of an international investment agreement with China.

Beijing hopes that this treaty will result in the harmonization of the patchwork of bilateral treaties that China has concluded with the EU members. For the EU, the opening of new markets for European investors is the key issue. However, the significance of the negotiations between the EU and China extends beyond the bilateral relationship itself. A future European-Chinese investment treaty will form part of an emerging power triangle between the EU, China and the United States in which the rules of global investment will be redefined.