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Ref. Ares(2017)3712792 - 24/07/2017
Ref. Ares(2017)4070668 - 17/08/2017
Art. 4.1(b)
Sent: 27 July 2016 10:41 
Art. 4.1(b)
 (TRADE);  Art. 4.1(b)
Subject: RE: EU-China Investment Agreement SIA sector analysis 
Art. 4.1(b)   
A sustainability impact assessment is a an assessment of the future agreement from an 
economic, social, environmental and human rights perspective that takes place during the 
negotiations in order to provide useful recommendations to the negotiators. That said the SIA 
is being conducted by an external contractor, i.e. not by the Commission in order to ensure 
the independent and objective character of the assessment and the ensuing 
I assume that the consultants would like to assess for instance a difference in investment 
flows in case the equity restrictions were lifted.  
On your second remark: Indeed, what we explained also at the CSD is that for the time being 
we hold text based discussions that are not sector specific. This means that we are discussing 
for instance an horizontal obligation not to discriminate against foreign investors in all sectors. 
At the stage of sector specific negotiations (not yet happening at this stage), we will discuss 
with China sector specific exceptions to this rule, for instance we might agree that the 
obligation not to discriminate will not apply to X sector where both or one of the parties may 
maintain the right to impose foreign equity restrictions.  
I hope this clarifies, but happy to discuss further in case of further queries.  
Kind regards,  Art. 4.1(b)  
Art. 4.1(b)
Sent: 26 July 2016 15:44 
Art. 4.1(b)
Subject: EU-China Investment Agreement SIA sector analysis 
Dear Art. 4.1(b) , 
Hope you are well. 
On July 5 2016, my colleague  Art. 4.1(b)
attended the Transport Equipment  discussion of 
the Ecorys EU-China Investment Agreement SIA workshops.  
According to her report, it appears that investment issues in China as described in our SEA 
Europe position paper are very difficult (if not impossible) to quantify.  
We understand that it is important to attend these meetings and to deliver input, but we find 
it difficult to understand how the EC negotiators will use these statistics politically and how 
the statistics in this SIA report will influence the negotiations.  What is the EC going to do 
with these statistics? 
Would you please give us some insight on this? 
In addition, you have said that the issues that our sector is facing in China (e.g. national 
treatment, shareholding restrictions, local content requirement) are also being addressed by 
other sectors.  Therefore, these problems will be addressed at the horizontal level.   

However, take shareholding restriction for example.  It is sector specific.  How can we make 
sure that such a restriction is removed for our sector if the issue is discussed at the horizontal 
Looking forward to your advice. 
With best regards, 
Art. 4.1(b)
Art. 4.1(b)  
Rue Marie de Bourgogne 52-54 
1000 Brussels, Belgium 
tel.: +32 2 282 0355