Publication

This paper examines the reasons for the negotiations on the establishment of a bilateral investment treaty between the EU and China initiated in early 2014 and at some of the potential benefits of such a treaty. The authors argue that although China and the EU approach numerous issues involved in the treaty differently, they have also strong incentives to seek compromise. Indeed, they suggest that reaching an agreement on investment topics could be a significant step towards creating a favorable environment for cooperation and resolving most contentious points in their bilateral relations in the near future.