Europe set to develop relations with China
Brussels: Europe is set to sign a Bilateral Investment Agreement with China soon. This was stated by Director General Trade, European Commission designated to EU-China negotiations to open up a bilateral trade during a discussion held here in last week.
International investment flows are now a critical component of the global economy, transferring capital, technology and skills and contributing to increased competition, innovation and growth in host countries.
As China moves towards becoming the world’s largest economy, its outward foreign direct investment is growing, not just in developing countries but also in the world’s most sophisticated markets, including the European Union.
The EU and China have opened negotiations this year for a bilateral investment treaty intended to set the terms of access and protection for two-way EU-China direct investment.
Many see Chinese direct investment as a significant economic opportunity for a financially constrained Europe.
Others see it as a threat, opening the door to state-guided competitors who play by different rules and who could put European jobs and technologies at risk.
In the inaugural remarks John Farnell, Senior Adviser, EU-Asia Centre said that the panelists participating is the debate in the back drop of the perception whether we should worry about the expansion of Chinese economy or it will help us to get out of recession to somehow. He said that USA is have more better economic relation with China than the Europe because it has a better system to deal foreign relations. While as Europe as an entity of many countries is always very slow in dealing such matters.
Joel Backaler, Frontier Strategy Group, American author of “China Goes West”said that Chinese companies are fastly connecting with the consumers of Europe and USA both at home and in overseas.
He resembled the relations of West with China with the famous Chinese quotation which says \”If you open the window for fresh air, you have to expect some flies to blow in.\”
Françoise Nicolas, Director of Centre Asie, IFRI said that China´s investment in Europe is not so big as compared to the other important countries of the world.
She said that there are more benefits than concerns of Chinese growth for our economy.
Alexandra Koutoglidou, DG Trade, European Commission who is negotiating EU-China for a bilateral investment agreement disclosed that several round of talks had been held with Chinese high officials. She denied to mention the details and said that text has been shared with each other to finalise a joint strategy.
Pascal Kerneis, Managing Director of European Services Forum accepted that Chinese economic growth is rapidly increasing in Europe. He said that Hong Kong is is a legal trust for Europe which is key to strengthening economic relation with China.