Answer to Written Question: Joint venture requirements under the investment agreement between the EU and the People’s Republic of China
(Source: European Parliament)
Answer given by Executive Vice-President Dombrovskis
on behalf of the European Commission
The EU-China Comprehensive Agreement on Investment (CAI) aims to improve EU investors’ access to the Chinese market by lifting restrictions such as express prohibitions to enter certain industries, equity caps and joint venture (JV) requirements. The CAI binds China’s existing level of liberalisation, including the removal of JV requirements in China’s national 2020 Negative List and any new market openings China will make in the future. The CAI also brings additional market opening beyond the current autonomous level of liberalisation in sectors that the EU has offensive interests (electric cars manufacturing, cloud services, private hospitals etc.).
China has committed to lift JV requirements in a number of sectors, notably in banking, trading in securities, insurance and asset management; in business services such as real estate services, rental and leasing, repair and maintenance for transport, convention services, photographic services, services incidental to agriculture, translation services; in environmental services; and for investment in medical institutions in eight key ‘Tier-1’ cities of 100 million urban population. China has also committed to lift all JV requirements in the automotive manufacturing by 2022. In a limited number of sectors of particular sensitivity for China, JV requirements remain in place, for example in telecommunications, oil-field related services, medical institutions in non-Tier-1 cities, general aviation and market survey services. For educational services, foreign investment should be made in cooperation with local partners. Likewise, the requirement to enter into partnerships or joint ventures is also maintained by EU Member States in few cases, for example in professional services.
 Shanghai, Beijing, Tianjin, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, Hainan