Ref. Ares(2017)3713080 - 24/07/2017
Ref. Ares(2017)4070668 - 17/08/2017
From:
Art. 4.1(b)
(TRADE)
Sent: Monday, September 19, 2016 6:00 PM
To: PETRICCIONE Mauro Raffaele (TRADE);
Art. 4.1(b)
(TRADE); KONIG Helena
(TRADE);
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(TRADE);
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(TRADE);
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(TRADE);
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(TRADE);
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(TRADE);
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(TRADE);
RUBINACCI Leopoldo (TRADE);
Art. 4.1(b)
(TRADE);
Art. 4.1(b)
(TRADE); Art. 4.1(b) (TRADE);
Art. 4.1(b)
(TRADE);
Art. 4.1(b)
(TRADE); Art. 4.1(b)
(TRADE);
Art. 4.1(b)
(TRADE)
Cc: SCHLEGELMILCH Rupert (TRADE)
Subject: Flash-BusinessEurope event on EU-China economic relations
Today, Rupert Schlegelmilch participated as a speaker on a seminar on EU-China economic
relations co-organised by BusinessEurope, the EU-China Chamber of Commerce and the EU-China
Business Association. Other speakers on the panel: Markus J. Beyrer (BusinessEurope, DG), Jörg
Wuttke (EUCCC, President) and Gunnar Wiegand (EEAS, Managing Director for Asia).
Markus Beyrer prologued the event, citing the investment negotiations, the China strategy
Communication, the outcome of the EU-China Summit and the Market Economy Status (MES) for
China as the issues of major interest in the current EU-China relation. He noted China's slowing
growth rates, the slow path to much desired reforms as well as the increasing difficulty of doing
business in China. On the negotiations, key asks of the industry were said to be a broad definition
of investment, market access for services and non-services, elimination of discrimination and
investment protection 'as good as under existing Member States' Bilateral Investment Treaties'.
Beyrer welcomed the concept of reciprocity in the Commission's China strategy Communication,
stressing that China is now a 'mature' (no longer developing country) that should be able to sign
up to a 'mature and balanced partnership' with the EU; at the same time he cautioned against
rising protectionism in Europe.
Jörg Wuttke delivered a short presentation of the main findings of the EUCCC's position paper,
which this year focuses on the 13th 5-year plan and 'reciprocity' for the EU's trade and investment
relationship with China. He noted the slow pace of the reforms and the growing frustration in this
respect, including within Chinese circles. He mentioned in particular the mishaps of the SOEs
reforms, that appear to be set in motion rather with the objective to strengthen Chinese SOEs and
create national champions; in the same vein, overcapacity was said to concern many other sectors
beyond steel. Finally, he underlined the importance of the investment agreement as a tool to
ensure a level playing field and to open up the Chinese market to EU investors.
Rupert Schlegelmilch provided an update of the state of play of the negotiations and confirmed
that the future agreement constitutes a unique opportunity – the first after China's accession to
the WTO – to legally bind China to a concrete path of opening up and levelling the playing field. In
terms of content and progress, he referred to the scope convergence and explained that the EU
pursues a high level of ambition in these negotiations. Rupert clarified also that the EU investment
protection reforms, including the investment court system, have been presented to China.
Gunnar Wiegand's presentation touched upon the Summit outcomes, China's participation in the
EFSI, the new strategy communication for China and cooperation with China to address global
challenges (e.g. climate change). Key message was that China is certainly no longer a developing
country and that a more balanced and reciprocal relationship should be pursued in all fronts.
Questions were raised on e-commerce, China's engagement on global issues, China's ability to
reform and on the future perspectives of the EU-China relationship.
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