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Yesterday, MEP Helmut Scholz presented a resolution text on the plans to conclude an Investment Agreement with China in the Committee on International Trade of the European Parliament. Rapporteur Scholz of the European Left as well as the other political groups are basically open to such an agreement. However, several MEPs such as Helmut Scholz, the Green MEP Ska Keller or Bernd Lange of the Social Democrats request to take labour and social standards as well as regulations in the health and environmental sector into account. The Agreement shall also guarantee reliable data protection.

Currently investment agreements only exist on the basis of individual Member States. These agreements shall now be replaced by an EU-China Agreement. The resolution text criticises China as there are still a number of barriers in place when a European company wishes to invest in China. Scholz therefore demands in his report to consider a number of standards, such as non-discrimination, the reference to Customary International Law or the ban on discriminating treatment of investors such as coercion, force or harassment.

The Social-Democrat MEP Bernd Lange refers to the current tense relationship with China, which resulted from a dispute over dumping prices for solar panels. He regards the Agreement as an opportunity to ease relations again and is in favour of the agreement taking into account labour and social standards as well as including CSR Commitments.

Both the representative of the European People’s Party, Iuliu Winkler and the Liberal representative, Marielle de Sarnez, demand the actual opening of the Chinese market for EU investors. Companies had to be treated equally. De Sarnez also demands a reliable dispute settlement mechanism.

The Green MEP Ska Keller praises that an investor-state dispute settlement mechanism is not part of the resolution. However, Keller demands that not only economic but also political aspects are included in the agreement. The MEP requests the inclusion of mandatory working standards and Corporate Social Responsibility. Human rights must not be undermined and environmental rules had to be taken into account.

The Commission promised to discuss environmental protection, human rights and corporate responsibility with the Chinese negotiating partners. However, it would be difficult to get China to agree to mandatory labour standards; however, she could be encouraged. In contrast to the opinion of several MEPs, the Commission official regards the investor-state mechanism as the best variant to ensure that investors will be able to seek redress, should the need arise. The Commission was very sceptical with regard to the demand of Bernd Lange, also to include data protection in the Agreement.

The Resolution on the Investment Agreement with China shall be passed in the European Parliament in autumn.