The political economy of China and the EU-China comprehensive agreement on investment

Sohyun Zoe Lee*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)peer-review

Abstract

This chapter examines China’s political economy rationale for the EU-China Comprehensive Agreement on Investment (CAI). Since reform and opening up, Beijing has frequently utilized economic policies not only to promote domestic reforms, but also to achieve security goals and to elevate China’s status in the global political economy. Given China’s emphasis on economic statecraft, to what extent is the EU-China CAI consistent with China’s conventional economic diplomacy? What were the key drivers that motivated China to negotiate the CAI? Examining the development of CAI demonstrates that the agreement has been driven in large part by Beijing’s conventional political and economic objectives. At the domestic level, the high liberalization standards and comprehensive scope of provisions adopted in the CAI have been utilized to lock in domestic reforms and strengthening the Chinese government’s legitimacy. At the international level, the CAI demonstrates China’s ambitions to raise its status and to take a greater role in shaping global rules of investment, driven by intense global power dynamics.

Original languageEnglish
Title of host publicationThe EU-China comprehensive agreement on investment: towards a binding investment liberalisation
EditorsAlexandr Svetlicinii, I-Ju Chen
PublisherSpringer Cham
Pages37-50
Number of pages14
ISBN (Electronic)9783031668623
ISBN (Print)9783031668616, 9783031668647
DOIs
Publication statusPublished - 11 Dec 2024

Publication series

NameEuropean Yearbook of International Economic Law
ISSN (Print)2364-8392
ISSN (Electronic)2364-8406

Keywords

  • China
  • EU
  • economy
  • diplomacy
  • investment

ASJC Scopus subject areas

  • Law

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