Divide and conquer? China and the cacophony of foreign investment rules in the EU

For more than 50 years, the European Union (EU) was not in charge of international investment agreements; its member states were, and they negotiated more than 1,200 bilateral investment treaties (BITs) with third countries. This lack of internal EU cohesiveness created costs for Europe, notably in terms of bargaining leverage over market access and ability to shape international norms. The 2009 Lisbon Treaty formally transferred competence over the negotiations of foreign direct investment (FDI) agreements to the EU, which became in theory a unified actor with respect to both outbound and inbound FDI. However, many political and legal ambiguities surround the true extent of the EU's authority and autonomy over foreign investment. This contribution argues that the surge of Chinese FDI into Europe, which is taking place simultaneously with this transition to a new EU foreign investment regime, has the potential to influence the final shape of this regime by exerting both centripetal and centrifugal pressures.