Possibility of a reciprocity clause in the free trade agreement between the EU and China

29.3.2010

WRITTEN QUESTION E-2380/10
by Sebastian Valentin Bodu (PPE)
to the Commission

The People's Republic of China has no restrictions on acquisitions of majority blocks of shares in European commercial enterprises (for example, China is about to acquire the majority block of shares in Volvo). At present, Chinese law includes restrictions which indirectly affect world trade in general and trade between the EU and China in particular, in the sense that foreign investors may only purchase minority blocks of shares in Chinese commercial enterprises.

Given the above, would it not be advisable to include a reciprocity clause concerning the size of foreign investments in the negotiations on the future EU-China free trade agreement, so that China can accept foreign direct investment by EU investors and amend its legislation by abolishing restrictions on the purchase of majority blocks of shares?

OJ C 138 E, 07/05/2011