Abstract
The European Union is the most important region for China’s FDI outside of Asia, while the Chinese market has been increasingly important for EU’s trade and investment as well. Therefore, China and EU proposed a Comprehensive Agreement on Investment (CAI) in 2013 to better regulate bilateral investment activities and concluded it at the end of 2020. On the basis of the springboard theory, the CAI can bring some opportunities for China. Firstly, China can seek advanced technologies and talents from EU to further build its core competitiveness and meanwhile, more Chinese capital has been allowed to enter the EU’s market. Secondly, the regulations and standards of the CAI contribute to the systematic reform of SOEs in China as well as the promotion of standardized operation and social responsibility of Chinese firms. Thirdly, it helps to enhance the innovation capabilities and upgrade the industrial structure of China. However, the CAI was not approved by the European Parliament in May 2021, so its final ratification still faces lots of difficulties.
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