[ad_1]
China agrees to sign investment agreement with EU
Investment agreement agreement with the EU after 7 years
European companies gain access to the Chinese market
First including labor rights from climate change
Expectations to improve entry conditions to China and Korea
Biden’s upcoming government strategy is expected to alter
Reporter Yoon Yeo-jin [email protected]
Check-in: 2020-12-31 05:58:59Revision: 2020-12-31 07:02:21Published: 2020-12-31 07:03:08
On the 30th (local time), Chinese President Xi Jinping and President Charles Michelle EU Summit, President of the European Commission Urzula Ponder Lyen, French President Emmanuel Macron and German Chancellor Angela Merkel (clockwise clock from top left) conducted a video conference. EPA Yonhap News
The European Union (EU), one of the main alliances between China and the United States, has reached an agreement on investments in seven years. With the United States increasing sanctions against Chinese companies through an alliance, China has a chance to escape pressure from the United States. The strategy of US President-elect Joe Biden is expected to be altered to pressure China through solidarity across alliances.
According to the AFP news agency, on the 30th (local time), Urzula von der Leien made a video call with Chinese President Xi Jinping with German Chancellor Angela Merkel, French President Emmanuel Macron and permanent president Charles Michelle EU Summit. He said that in principle, negotiations to sign an investment agreement with China had ended. Chinese President Xi Jinping said: “The investment agreement with the EU will provide a wider market and a better business environment for investors from both sides. This agreement demonstrates China’s determination and confidence in opening up.”
The aim of this agreement is for European companies to gain access to unprecedented markets in China, such as telecommunications, finance and electric vehicles. It is analyzed that European companies may also enjoy a more favorable investment environment in China than US companies. As the EU maintains a high level of openness to foreign investment, the agreement focuses on the EU benefiting even more from investment in China.
European companies will be able to operate in China in fields such as electric vehicles, private hospitals, real estate, advertising, maritime industry, cloud communication services, air transport reservation systems and ground services. Conditions such as having to open a joint venture with a Chinese company upon entering China are removed. China has decided to prohibit mandatory technology transfer by foreign companies, make subsidy payments transparent, and prohibit discrimination against foreign investors by state-owned companies. Along with this, information on the right to work on climate change was included for the first time. China has pledged to continue its efforts to comply with the International Labor Organization (ILO) Convention that prohibits forced labor.
Chinese President Xi Jinping during a video conference with EU leaders in Beijing on the 30th (local time). Shinhwa Yonhap News
Since negotiations began in January 2014, China has waged an all-out war to sign an investment agreement with the EU. In particular, since the inauguration of the Trump administration, the US has lobbied EU member states to increase sanctions against Chinese companies, including Huawei, which is why China was hoping that this year’s investment deal with the EU it was an opportunity for the US to escape the siege. . Prior to this, China signed a Regional Comprehensive Economic Partnership Agreement (RCEP) with 14 countries, including United States allies South Korea and Japan, and expressed interest in joining the Pacific Rim Comprehensive and Progressive Economic Partnership Agreement. (CPTPP). Biden’s strategy to pressure China through cross-alliance solidarity is expected to be disrupted.
However, not a few point out that this agreement is very likely to be an obstacle, since the negotiations were concluded on the basis of interests and not deep ties between China and the EU, including the theory of Chinese responsibility crown 19 within the European Union.
The investment agreement between China and the EU must be ratified by the 27 EU member states and the EU Parliament. Consequently, it may take at least several months to a year for the actual conclusion or implementation of the agreement. As the EU Parliament considers regulations for the protection of workers to be important, such as the ban on forced labor, the next Biden administration promoted the strengthening of the EU alliance, raising China’s responsibility for COVID -19 and addressing China’s implementation of the Hong Kong National Security Law and the human rights issues of Uighurs. Public debate can make it difficult for the EU parliament to pass.
Meanwhile, the prospect was raised that if the EU-China investment agreement comes into force in the future, the conditions for Korean companies to enter the Chinese market will improve. In a recent report, Do-yeon Kim, Belgium Brussels Trade Officer, said: “If the future investment agreement comes into force, the relaxation of regulations on investment of foreign companies in accordance with the agreement and the improvement of Chinese market entry conditions by opening the market will create opportunities for Korean companies to invest in China. “It is expected to act positively to resolve the difficulties of Korean companies entering China.”
Reporter Yoon Yeo-jin [email protected] Some news from Yonhap
