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Leaders of China and the EU jointly announced the successful conclusion of negotiations on the China-EU Investment Agreement as scheduled. The negotiations for the agreement, which began in 2013, spanned seven years and involved 35 rounds of talks.
So, what benefits will the agreement bring to businesses in China and the EU? In which areas has market openness been expanded?
Li Yongxia, Director of the Department of Treaty and Law at the Ministry of Commerce, stated that China has incorporated measures of independent opening-up in areas such as finance within the China-EU Investment Agreement. Additionally, based on its own development needs, China has systematically expanded the opening-up of certain service sectors and parts of the manufacturing sector, such as hospitals and automobiles.
Western Securities believes that the China-EU Comprehensive Investment Agreement will boost market confidence and benefit multiple related investment sectors:
1) Most notably, China may agree to open up its markets in several sectors to EU companies, including manufacturing, financial services, real estate, construction, and auxiliary services supporting maritime and air transport. In return, China has secured the EU’s agreement to open up investment in renewable energy. This is beneficial for the new energy sector and will create incremental markets for the export and investment of China's photovoltaic and wind power enterprises.
2) Six key industries that will benefit from reduced investment barriers and restrictions: transportation equipment, mining and energy extraction, chemicals, food and beverage manufacturing, finance and insurance, communications and electronic equipment.
3) Benefiting from the expansion of outward foreign direct investment: The EU’s direct investment in China is mainly concentrated in the automotive industry, consumer goods and services, pharmaceuticals and biotechnology, and basic materials industries. Meanwhile, China’s direct investment in the EU primarily focuses on the new energy sector, real estate, and...
So, what benefits will the agreement bring to businesses in China and the EU? In which areas has market openness been expanded?
Li Yongxia, Director of the Department of Treaty and Law at the Ministry of Commerce, stated that China has incorporated measures of independent opening-up in areas such as finance within the China-EU Investment Agreement. Additionally, based on its own development needs, China has systematically expanded the opening-up of certain service sectors and parts of the manufacturing sector, such as hospitals and automobiles.
Western Securities believes that the China-EU Comprehensive Investment Agreement will boost market confidence and benefit multiple related investment sectors:
1) Most notably, China may agree to open up its markets in several sectors to EU companies, including manufacturing, financial services, real estate, construction, and auxiliary services supporting maritime and air transport. In return, China has secured the EU’s agreement to open up investment in renewable energy. This is beneficial for the new energy sector and will create incremental markets for the export and investment of China's photovoltaic and wind power enterprises.
2) Six key industries that will benefit from reduced investment barriers and restrictions: transportation equipment, mining and energy extraction, chemicals, food and beverage manufacturing, finance and insurance, communications and electronic equipment.
3) Benefiting from the expansion of outward foreign direct investment: The EU’s direct investment in China is mainly concentrated in the automotive industry, consumer goods and services, pharmaceuticals and biotechnology, and basic materials industries. Meanwhile, China’s direct investment in the EU primarily focuses on the new energy sector, real estate, and...
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