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HONG KONG, Jan.2 (SCMP): Chinese President Xi Jinping and top European Union leaders are expected to overcome the last remaining hurdles to a landmark investment deal in a telephone conversation on Wednesday, the South China morning post has learned.
German Chancellor Angela Merkel is expected to join the call alongside Charles Michel and Ursula von der Leyen, the presidents of the European Council and Commission, according to multiple sources with direct knowledge of the preparations.
The sources added that French President Emmanuel Macron could also attend. His office has not responded to a request for comment.
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An EU source added that the call with Xi was “planned, but not yet confirmed.”
The EU hopes the Chinese leader will clarify the agreed language on Beijing’s commitment to ratify international pacts on forced labor, an issue that threatened to derail the deal at the last minute, as negotiators finalize details on market access.
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“We hope that the agreement is ready by the end of this week,” said an EU diplomatic source.
It is understood that the videoconference will attempt to close the deal in principle, but will not be signed until later.
The deal will still have to be approved by the European Parliament (EP), where some members have attacked the deal, criticizing what they say is a lack of transparency from Brussels or raising concerns about forced labor and its impact on relations with the United States. .
Reinhard Bütikofer, who heads the parliament delegation to China, said the Commission and Germany, which currently holds the council presidency, are pushing hard to finalize the deal before the end of the year. However, he added: “The essence of the proposed agreement is still shrouded in secrecy. No information has yet been provided to the [parliament’s] trade committee “.
Chinese Foreign Ministry spokesman Wang Wenbin said Tuesday that “the prospect is an expectation.”
“Thanks to the concerted efforts of both sides, the negotiations have made great progress recently,” Wang told reporters. “We hope that the agreement will materialize as soon as possible and provide a systematic framework as a solid safeguard for the economic and trade cooperation between China and the EU.”
The agreement will help expand access for European companies to restricted markets in China. In return, Beijing hopes to get a piece of the EU renewable energy market and shore up its diplomatic ties with a bloc that seems increasingly likely to partner with Washington.
A Chinese government adviser who spoke on condition of anonymity said the deal would also give China influence in the rulemaking process for new industries.
“China-EU cooperation is important for Beijing to counter the US blockade,” the adviser said. “At the national level, an agreement would help stabilize foreign investment, while externally, China does not want to see the formation of an anti-China alliance.”
Some Chinese analysts believe that the agreement will help future free trade and investment agreements covering issues such as sustainable development, the environment and labor rights.
“It will push China to update and improve its institutional arrangements, and push it towards high-level and high-level agreements for future FTAs and other agreements,” said Ding Chun, director of the Center for European Studies at Fudan University in Shanghai. .
China Insists Investment Agreement Negotiations With EU Going Smoothly
Ding said the deal could also set a benchmark for future deals between the “big three”: the United States, China and the EU.
The United States signed a phase 1 trade agreement with Beijing, but it does not cover issues such as market access and level playing field that the EU-China agreement covers, nor has it closed a free trade agreement with the EU.
“From any perspective, be it political or economic, this is a great thing for China-Europe relations,” said Shi Zhiqin, director of the China-EU relations program at the Carnegie-Tsinghua Center.
“In the context of counter-globalization, it should … be seen as a success,” Shi added.
Additional reporting from Jun Mai, Wendy Wu, Catherine Wong, and Keegan Elmer. – South China morning post
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