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Tag Archives: Investment

China’s M&A activity rebounds with a clear focus on Europe

Despite the pandemic, China’s interest in overseas M&A started to rebound in late 2020, with European industrial companies still of particular interest. The sharp recession of early 2020 and tightened measures on social interactions weighed on China’s announced outbound mergers and acquisitions last year, despite China’s containment of COVID-19 and a significant recovery in growth later that year. Outbound M&As in 2020 were down by nearly one-third in number and more than half in...

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The EU-China investment deal may be anachronic in a bifurcating world

Ultimately, only time will tell if this landmark trade agreement will be productive and counter the potential bifurcation of international value chains. After more than seven years and 35 rounds of negotiations, the European Union finally reached a deal with China on the Comprehensive Agreement on Investment (CAI) in December 2020. CAI is intended to replace 25 bilateral investment agreements between EU individual member states and China by offering greater market access within specific...

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A rushed deal or a rush to judgement?

The Comprehensive Agreement on Investment (CAI) is supposed to improve market access for European companies operating in China and to ensure a level playing field, as well as reciprocity. Does it fulfil such expectations? On 30 November 2020 after over 7 years of talks, the European Union and China concluded negotiations for a Comprehensive Agreement on Investment (CAI for short). The agreement is intended to increase investment between the EU and China by establishing a legal framework and...

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Europe’s disappointing investment deal with China

This opinion piece was originally published in Nikkei Asia. After more than seven years of negotiations, the European Union and China appear to have reached a deal for their Comprehensive Agreement on Investment to go forward right before the deadline pressed by President Xi Jinping at the EU-China summit back in September. The deal is important politically as it shows the EU’s commitment to its own economic sovereignty without constraints from the U.S. and it follows the example set by...

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Deglobalisation in the context of United States-China decoupling

After decades of increasing globalisation, there now seems to be a slowing, or even a turn to deglobalisation, meaning decelerating trade and investment and reduced global value chains. This trend seems to have accelerated because of the United States’ push to contain China in the context of their strategic competition. So far, however, there is less evidence of deglobalisation in terms of financial flows. After decades of increasing globalisation on every front, from trade – pushed further...

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When and how should the European Union conclude an investment agreement with China?

A look into the potential Comprehensive Agreement on Investment between China and the European Union. After more than seven years of negotiations, a final agreement between China and the European Union on a Comprehensive Agreement on Investment (CAI) could be reached before the end of 2020. This deadline was agreed at the EU-China Summit in April 2019 and President Xi reminded European of the importance of striking a deal before year-end during the EU-China Virtual Summit in September. Here,...

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Not all foreign investment is welcome in Europe

A new plan to tackle foreign subsidies would empower the European Commission to investigate foreign investments in the European Union, with Chinese investment particularly in the spotlight. This increased scrutiny could deter some investors. Overall however, fairer competition is worth some lost opportunities. Imagine that the Tour de France allowed non-French competitors, and only non-French competitors, to use performance-enhancing drugs. Now imagine these rules were changed to ban the use...

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Trump’s International Economic Legacy

If Donald Trump loses the United States presidential election in November, he will ultimately be seen to have left little mark in many areas. But in the US's relationship with China, the decoupling of economic links could continue, and that could force Europe into hard choices. By: Jean Pisani-Ferry Date: September 29, 2020 Topic: Global Economics & Governance This opinion post was originally published in Project Syndicate. It would be foolish to start celebrating the end...

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China Has an Unfair Advantage in the EU Market. What Can Be Done to Level the Playing Field?

This article has originally been published in Brink News. The dominance of Chinese state-owned enterprises in China’s domestic market is giving them unfair advantages in the European Union single market as well. The EU Commission recently released a series of recommendations for leveling the playing field regarding foreign subsidies. Unfortunately, while useful, these ideas are unlikely to […] The dominance of Chinese state-owned enterprises in China’s domestic market is giving them unfair...

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European capital markets union, by rule and by choice

While the euro is now a leading global currency and the European Central Bank has become a comprehensive banking supervisor, Europe’s markets have been treading water. By: Rebecca Christie Date: January 23, 2020 Topic: Finance & Financial Regulation Europeans in the 21st century are used to freely living, working and spending money across borders. But when it comes to banking and investing, their main options are strictly close to home.Despite adopting a common currency and...

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