Private companies are an important investment force in Europe

On April 29, the China International Trade Promotion Council (CCPIT) released a report on the prospects for implementing the Comprehensive Investment Agreement between China and the EU (CGI).

Yu Yi, spokesman and director of the CCPIT Information Office, recalled at a press conference that the leaders of China and Europe had announced the completion of IPG signing talks in December 2020, as planned. Therefore, the purpose of the report was to analyze the impact of the agreement on bilateral investment and industrial development between China and Europe, as well as to examine the views and expectations of companies regarding the future of the agreement.

Yu I singled out four main conclusions from the report. First of all, Chinese private companies are an important investment force in Europe today. Among the surveyed companies that have invested in the European Union, private and private companies account for 67% of the total. Second, the companies have relatively high expectations for the formal signing of the agreement, as they believe that the entry into force of the IGA will open new opportunities for investment and industrial development on both sides. Among the 74% of Chinese and 67% of EU companies surveyed, the signing and entry into force of the agreement will benefit the development of the manufacturing industry in their country, and almost half of Chinese and EU companies believe that the services sector will benefit. Third, the freezing of the agreement may have a greater impact on Chinese companies ‘investments in the EU than on European companies’ investments in China. Of the Chinese companies surveyed, 33% said the AGI freeze would hurt their investment plans in Europe, 37% said they were unsure, and less than a third of companies surveyed said they were not afraid of the impact of the freeze deal. Of the European companies surveyed, half believe the AGI freeze will not change their investment plans in China. Fourth, Chinese companies still face some difficulties in their investment projects in Europe, and their demands for specialized services are high. Among the problems they face are the restrictions on land transactions and market access.

The report recommends that the Chinese government, given the current circumstances, accelerate the development of bilateral investment cooperation between China and the EU, making institutional openness and optimizing the business environment as key areas, encouraging progress in the green and digital economy and ensuring a credible bilateral investment mechanism. He recommends that companies closely monitor the evolution of the status of the agreement and optimize their international activities by investing more in research and development, strengthening the management of environmental and labor standards in their activities. current affairs, promoting diverse and inclusive corporate activities. culture, as well as preparing for investment and increasing the transparency of their investments. In addition, Chinese state-owned enterprises are called upon to respond appropriately to issues related to “neutral competition” and to carefully assess overall risks.

Yu Yi stressed that the EU has been an important economic and trade partner and source of technology for China for many years, and that China needs the participation of EU capital, technology and talent in building its new model of double circulation. As the world’s largest source of foreign direct investment, the world’s second largest foreign direct investment and largest trading power, China has enormous market potential for the EU, and deepening cooperation with China is in the EU’s long-term interest. Economic and trade cooperation has promising prospects, and China and Europe are seeing a trend of increasing cooperation in these areas. The early entry into force of the AGI will be a driving force for the development of this cooperation and will contribute to economic and social development, transformation and modernization of industry and internationalization of business in China and Europe.

Yu Yi noted that the CCPIT called on PricewaterhouseCoopers to conduct the study. The research was conducted over three months, mainly through questionnaires, interviews with experts and discussions with companies. A total of 512 questionnaires were returned, of which 93% were completed by Chinese enterprises from 11 provinces, autonomous regions and municipalities, including Beijing, Shanghai, Shandong and Jiangsu, in the manufacturing, non-financial, financial, agricultural and other business sectors. .

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