Figure 1 - uploaded by Liming Wang
Content may be subject to copyright.
Source publication
The negotiation of the Comprehensive Agreement on Investment (CAI) between the EU and China has convened over 34 rounds in the last seven years. The CAI, when finally established, will constitute a historical first, unprecedented in being the most detailed and important agreement between the EU and China ever. It is expected that both parties will...
Context in source publication
Context 1
... total GDP of China and the EU reached US $29.9 trillion in 2019, accounting for 34% of global GDP (World Bank 2020). In the first 8 months of 2020, total import and export volumes between the 27 EU countries and China reached 382.3 billion euros, making China the EU's largest trading partner for the first time (See Figure 1). In terms of the geographic distribution of China's investment in the EU, Figure 2 depicts the cumulative value from 2000 to 2019, which totals 194 billion euros and indicates eastern Europe falling behind western Europe. ...
Similar publications
Empirical studies suggest that globalization (FDI and international trade) has been greatly affected by the COVID-19 and related anti-pandemic measures imposed by governments worldwide. This paper investigates the impact of globalization on intra-provincial income inequality in China and the data is based on the county level. The findings reveal th...
Citations
... In the investment arena, concerns about the security and intellectual property risks of Chinese investment persist, yet the international system does not provide a clear set of norms on which investment relations can be based. In the absence of the CAI, the EU must fall back on member state BITs, many of which were negotiated in a very different context (Wang & Li, 2020). The development of novel policy tools like its investment screening mechanism and its foreign subsidies regulation demonstrate a willingness to scrutinise investments at the same time as the clear need for investment in key strategic sectors, particularly those related to the energy transition, makes securing such flows a priority. ...
The chapter argues that the EU needs to develop a nuanced approach to engagement with China if it is to achieve its geo-political objectives. One avenue for such engagement could focus on the defence (and sometimes revision) of global norms. It explores two key areas of global governance—that related to trade and investment and that on environmental protection—highlighting how the bilateral relationship is framed by such global norms as well as the extent to which they have enabled successful partnership to develop. The chapter notes both the potential for cooperation and the very real challenges which persist in seeking to engage constructively with China in a shifting geo-political context where such norms are both increasingly vital and widely questioned and undermined.
... The challenges faced in implementing CSR during the COVID-19 pandemic could threaten a company's reputation and affect market perceptions of the company's value in the long term (Wang & Li, 2020). Therefore, companies need to take strategic steps to maintain their commitment to CSR while also maintaining financial stability and addressing urgent needs caused by the crisis. ...
Purpose: The purpose of this study is to analyze the impact of various independent variables, namely Corporate Social Responsibility (CSR), company size, leverage, and board size, on company performance measured by the Tobin's Q ratio as the dependent variable. The sampling technique used was Purposive Sampling resulting 70 sample data for 4 year observating from 2019-2022. The data was analyzed using multiple regression, since the data in the study was pooled data, Chow test was conducted to choice the best model. Based on the Hausman test, fixed effects model was elected. The result showed that CSR and company size have a negative effect on the Tobin's Q ratio, while leverage and board size do not show significant impact. The study recommends that companies in the chemical industry sector carefully design CSR programs to ensure that these programs genuinely reflect their commitment to sustainability and social responsibility, as improper implementation can reduce company value. Additionally, companies are advised to reevaluate their organizational size to find an optimal balance that can support financial performance. The study also suggests that the government should strengthen regulations that support responsible and sustainable business practices, and provide incentives for companies that implement environmentally friendly practices. Improved transparency and reporting on CSR are also considered important to provide accurate information to the public and other stakeholders.
... Restrictions on internal movements have had a positive effect on economic growth as fiscal policy spending has increased. Sansa (2020) and Wang and Li (2020) observed that financial markets in China remained strong and stable despite this serious pandemic situation. ...
Purpose: This study examines the impact of the COVID-19 health crisis on the behavior of actors and legislation on the Moroccan stock market. Research Methodology: This study uses the collection and exploitation of data from key institutional reports and legal data limited to certain laws and regulations (excluding relevant case law and doctrine) attesting to the orientations of capital market authorities following the declaration of a state of health emergency. Results: The analysis revealed that the measures taken by the government, central bank, and AMMC helped curb the capital market and provide investors with the tools they need to strengthen the resilience of Morocco's capital market. Limitations: The first concerns the difficulty of analyzing the long-term effects of a health crisis. The second limitation concerns the existing models, theories, and methodological limitations. Contribution: This documentary study synthesizes the psychic reactions and behaviors of Moroccan stock exchange market actors in times of crisis. In addition, it enables researchers to better understand the legal interventions taken to regulate and redirect behaviors influenced by the pandemic in the Moroccan capital market.
... These disputes continued to persist as negotiations progressed (Fan, 2020). However, as the CAI negotiations reached their culmination in December, China took two pivotal steps that played a decisive role in facilitating the agreement's conclusion (Wang & Li, 2020). Firstly, China made a critical commitment not to lower labor protection standards to attract investment, emphasizing that labor standards would not be wielded for protectionist purposes (Trencher et al., 2021). ...
In the dynamic landscape of international trade, labor provisions within Free Trade Agreements (FTAs) have emerged as a pivotal intersection of trade liberalization and labor rights. This study delves into the historical development, motivations, and consequences of labor provisions, with a particular focus on China’s evolving role. Drawing on comprehensive analyses, this research uncovers a significant shift in the prioritization of labor standards by major global economies, notably the United States (US) and the European Union (EU), within their respective FTAs. The study highlights the theoretical implications of this shift, offering valuable insights into the adaptability and potential refinement of labor provisions in diverse contexts. Moreover, it underscores the policy implications for negotiators and policymakers, advocating for a tailored approach to labor standards that considers the unique circumstances of individual countries, particularly developing nations. The recommendation to fuse labor and environmental clauses into sustainable development chapters within FTAs provides a pragmatic blueprint for fortifying the applicability and enforceability of labor standards. By integrating labor and environmental considerations, FTAs can foster more holistic and harmonious trade relationships, ultimately contributing to a more equitable and sustainable global trade landscape.
... Many studies in the literature examined the role of cultural differences while investigating investors' risk perception in the market. For example, Wang and Li (2020) analyzed the risk perception while making an investment in the stock market between the investors of China and America. ...
In recent years, field of behavioral finance has gained increasing attention, with numerous studies investigating impact of various factors on investors' decision-making. However, there remains a critical gap in literature when it comes to a comprehensive understanding of the factors that influence retail investors' decision-making. This gap presents a chance for further research to explore factors that affect retail investors' decision-making, particularly in developing nations like Pakistan. The study examines both behavioral and external factors that impact the financial decision-making of retail investors in Pakistan. The research includes a sample of retail investors who invest in the Pakistan stock market, and data is collected using the simple random sampling technique. 1000+ questionnaire were distributed & 545 responses were received. The researcher used Smart-PLS for the purpose to analyze both measurement model and structural model. Results reveal that all exogenous variables have a significant influence financial decisions of retail investors in Pakistan stock market. Results hold significant implications & limitations for behavioral finance.
... This result is in line with Jiang et al. (2021) who asserted that the movements of the financial market index, especially the stock market, demonstrate how investor perception affects a specific industry. Sansa (2020) and Wang and Li (2020) observed that in China the financial markets remained strong and stable despite this severe pandemic situation. Other studies on the effect of the pandemic on price exchange trades have obtained different results. ...
The objective of this study is to investigate the impact of the COVID-19 pandemic and stock market psychology on investor investment decisions in different business units operating in the Shandong stock market. The sample size of the study consists of 5,000 individuals from six different business units. The study used the event study statistical technique to analyze the market reaction to newly released information from the stock market perspective to assess whether the number of COVID-19 positive cases impacted it. With a Z score value of 40.345 and a P-value of 0.000, the Wilcoxon test indicated that stock prices before and after the pandemic were quite different. The test showed a positive relationship between the pandemic and the stock market. Further, the results indicated that COVID-19 and stock market psychology had a significant positive impact on investor investment decisions in cosmetic and beauty, consumer household, textiles and apparel, and consumer electronics industries; however, in the sporting and consumer appliance industries, it had an insignificant negative impact. This study serves to guide investors to make suitable changes in their stock market trading practices to counter these challenges to increase their required rate of return from their specific stock market investment. The findings have important insights for various stakeholders including governments, regulatory bodies, practitioners, academia, industry, and researchers.
... Since the pandemic has shown the (perceived) challenges of relying on global supply chains (Gereffi, 2020) and FDI, EMNEs (and AMNEs) will likely face a changing and potentially more hostile regulatory environment related to cross-border M&A. Policy makers need to evaluate the impact of various types of FDI regulations (especially legal protection) on EMNEs' capability building and leveraging M&A to their countries (Santander & Vlassis, 2021;Wang & Li, 2021). ...
While institutional distance presents opportunities for development of the general theory of springboard MNEs, the direction of distance and its relationship to the motivations to springboard are largely ignored in the literature on emerging-market MNE (EMNE) internationalization. To fill the research gap, we develop a model of springboard motives, and incorporate institutional distance (including its direction) and ownership share as factors explaining them. Based on an empirical analysis of over 700 mergers and acquisitions (M&As) by EMNEs from 26 emerging economies in 2015–2017, we find that EMNEs tend to have capability-building springboard motives in cross-border M&A when they move down the institutional ladder from a higher to lower quality institutional environment (with larger negative distance in FDI regulatory risk). The capability-leveraging motive is positively related to distance in terms of FDI regulations (particularly legal protection) when the company moves up the institutional ladder. Importantly, these relationships are moderated by ownership share.
... Of course, among the many cooperation documents, the most eye-catching is that China and the EU have fully reached the China-EU Comprehensive Investment Agreement (CAI). CAI benchmarks against international high-level economic and trade rules and is a balanced, high-level, mutually beneficial agreement [7][8][9], which will not only but will also strongly stimulate the recovery of the world economy in the post-pandemic era, promote the liberalization and facilitation of global trade and investment, and make important contributions to building an open world economy [10][11][12]. Relevant data indicates that in terms of trade, the total import and export volume between China and other countries along the BRI increased from USD 1.04 trillion to USD 1. 34 [13], "Chinese-style neocolonialism" [14], or "China's debt trap" [15], whose purpose is to expand the scope of forces and seize natural resources. en, will the promotion of the BRI have a significant impact on poverty reduction in countries along the route? ...
Poverty reduction is an important driving force for the global realization of the United Nations 2030 Sustainable Development Goals and the building of a global community with a shared future for mankind. This paper takes the Belt and Road Initiative (BRI) as a quasi-natural experiment. Based on the panel data of 134 countries in the world from 2000 to 2018, this paper uses the difference-in-difference (DID) model to examine the impact of the BRI on poverty reduction in countries along the route and to study its internal mechanism from the dual perspectives of trade openness and investment openness. The results show that (1) the BRI can significantly reduce the incidence of poverty with the impact coefficient stable at −0.26, and the empirical conclusion has passed the parallel test, placebo test, and instrumental variable test; (2) the mediating effect test model shows that the BRI can achieve poverty reduction through the dual openness of trade and investment, and the intermediary effect of trade openness is greater than investment openness; and (3) from the perspective of heterogeneity analysis, geographically, the BRI has a slightly higher role in promoting poverty reduction in landlocked countries than in coastal countries. In terms of economic location, the effect of poverty reduction has a certain “pro-poverty” characteristic, that is, the BRI promotes poverty reduction in low- and middle-income countries far more than other types of income countries. Therefore, we believe that the continuous deepening of the BRI high-quality construction and the strengthening of cooperation among countries along the route will play a key role in promoting the international cycle of trade, investment, and other factors, as well as the cause of poverty reduction in the region and the world.
... Chinese President Xi Jinping announced the 'Belt' and the 'Road' during public speeches in Kazakhstan and Indonesia in September and October 2013. 2 For an analysis of how BITs can help plug the gap in BRI governance see Huaxia and Lentner (2018); Casas i Klett and Serrano Oswald (2018); Li and Bian (2020); Chaisse and Kirkwood (2020). For an analysis of the use of both hard law and soft law in the BRI see Wang (2019a), in his paper Heng Wang coined the term 'maximum flexibility' to describe China's BRI strategy as shaping legal frameworks that are sufficiently fluid and malleable to meet the extremely wide range of the BRI's diverse challenges- Wang (2019a), p. 43. 3 Regarding the China-EU CAI see Chaisse (2018); Li and Bian (2020); Wang and Li (2020); Xiaoyu (2021). Regarding RCEP see Wang H (2017b); Yin (2018); Vines (2018). ...
This article analyses dispute resolution in China’s Belt and Road Initiative (BRI) from the perspective of the debate on unity, diversity and fragmentation of international law. This article presents a critical perspective that although the BRI preaches unity through greater economic (and social) integration, it currently increases fragmentation by failing to offer a unified dispute resolution mechanism. The analysis considers how some of the major procedural issues perceived in the BRI—at the time of transnational dispute management—are being addressed. Approaching this from the perspective of diversity in international law provides a novel method to consider BRI adjudication, and (potentially) a concrete target (of unity) to aim towards for strengthening the BRI as a genuine transnational law-making process. However, the consequences of increased fragmentation in BRI dispute resolution are many, including multiplications of disputes in different forums (with different procedures, case law and legal remedies) which, in the long term, will bring deep fragmentation among BRI countries and become an impediment to the BRI’s success. Finally, this article asks whether unity in BRI dispute resolution is a realistic target, considering the Chinese State’s (perceived) preference for maintaining flexibility in relation to the initiative, and highlights the long-term consequences for international lawyers of the fragmentation in BRI dispute resolution.
... Given that the tensions between the US and China have been intensified since the outbreak of the pandemic, the EU has become a vital cooperative partner for China to address important issues and challenges, like the rise of protectionism, and deglobalisation which would be essential for the recovery and growth of its economy. Wang and Li (2020) reviewed the negotiation of the Comprehensive Agreement on Investment (CAI) between the EU and China and assessed its potential impact in the post-pandemic era. The CAI, convened over 34 rounds since 2014, is destined to become one of the major pillars of EU-China economic relations and the most important agreement between the EU and China ever. ...
It is indisputable that the Covid-19 pandemic has shaken the world economy and indeed panglobal society in many dimensions. In this Introduction to our Special Section, we examine the dynamics involved, particularly in relation to China and the world economy, and the response policies utilised for post-pandemic recovery based on detailed and critical comments and summaries of the excellent papers collected in this volume. We highlight the impact of the pandemic on global supply chains with a particular focus on China’s trade, foreign direct investment, digitalisation and innovation, its cooperation with its major trade partners, as well as the economic outlook of the Chinese economy against the backlock of the pandemic and US-China tensions. How other countries responded to the pandemic is also brought in so as to understand China’s response in a broad context and the role of culture and institutions in the process.
