EU-China Comprehensive Economic Agreement on Investment
Cluster International of the Greens/EFA group in the European Parliament (2022)
Dr. Federica Violi, Dr. Ioannis Kampourakis, Stephanie Triefus and Prof. dr. Alessandra Arcuri
The objective of the study was to provide a comprehensive legal analysis of certain fundamental aspects of the EU-China Comprehensive Agreement on Investment. More specifically, it investigates thoroughly national treatment commitments (with a focus on NEVs), and reflects on the extension thereof, also in light of Chinese relevant domestic law. The study continues discussing national security matters within the legal framework of CAI and the Chinese National Security Law. It examines the dispute settlement mechanism enshrined in the treaty and the legal viability of retaliatory and cross-retaliatory measures, both under CAI and EU law. The study proceeds by engaging in an assessment of political risk and coercion, in particular in relation with the corporate social credit system (CSCS), and questions whether and how the CSCS interacts with CAI and with what consequences. Finally, the study analysis the Sustainable Development Section of CAI and exposes its mostly hortatory language and lack of stringent obligations, also in light of both EU and China’s carbon neutrality and sustainability objectives.