Answer given by Executive Vice-President Dombrovskis on behalf of the European Commission

The EU-China Comprehensive Agreement on Investment (CAI) is a sectorial agreement that aims to improve European investors’ access to the Chinese market and the conditions under which they operate in China. China has made far more market access commitments than the EU has, including targeted new market openings. In this regard, the CAI redresses the asymmetry in market openness between the EU and China and injects more reciprocity in the bilateral economic relationship. While it has an important role to play with regard to sustainable development, including labour, it cannot address on its own the complex set of problems related to China.

The CAI provides for a robust state-to-state dispute settlement mechanism and institutional framework for monitoring the implementation of the commitments taken in the Agreement. The latter consists of a political oversight mechanism, which provides for a rapid alert procedure in case of substantial problems. The chapter on sustainable development is subject to a specifically tailored enforcement mechanism involving an independent panel of experts and a specific working group is established to monitor the implementation of sustainable development-related matters. These are all important to ensure that China follows through its commitments in practice.

The CAI is part of the EU’s toolbox to rebalance the asymmetric economic relationship with China through pursuing rules-based solutions. This is complementary to autonomous measures as well as multilateral cooperation and cooperation with allies to promote a level playing field. The EU notably plans to cooperate more closely with the United States administration to address the challenges linked to China’s state-driven economic model.