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ARTICLE · 13 JANUARY 2021

EU-China Comprehensive Investment Agreement – Cloud (Services) On The Horizon?

Morrison Foerster
Morrison Foerster
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Morrison Foerster

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On December 30, 2020, the European Commission announced an in principle agreement with China on the terms of an EU-China Comprehensive Agreement on Investments ("CAI").

GlobalGovernment, Public Sector
Gordon Milner
Gordon Milner
Chuan Sun
Chuan Sun
Paul McKenzie
Paul McKenzie
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On December 30, 2020, the European Commission announced an in principle agreement with China on the terms of an EU-China Comprehensive Agreement on Investments (“CAI”).  It contemplates what the Commission's press release described as an “ambitious opening by China to European investments” that includes market access commitments across a wide range of sectors – including cloud services and other online services. 

This is exciting news for European technology companies.  The press release explains that China has agreed to:

  • an opening of its cloud services sector to EU investment, up to a 50% equity cap, and
  • a “technology neutrality” provision so that equity caps applicable to value-added telecoms (“VATS”) investments will not apply to services in other sectors merely because they are offered online. 

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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