EU and China conclude controversial investment deal “in principle” / Beijing promises “unprecedented access” to domestic market for European companies – International

After seven years of negotiations, the political agreement was reached in a video conference between Chinese President Xi Jinping, EU leaders Ursula von der Leyen and Charles Michel, as well as German Chancellor Angela Merkel and French President Emmanuel Macron.

The official signature will take place at a later date.

The leaders have “concluded negotiations in principle” on this mutual investment protection agreement, in which Beijing “is committed to providing unprecedented access to its market” for European companies, to which it also promises to provide “visibility”. according to a statement to the EU.

According to Brussels, the agreement “will help to rebalance” relations considered “asymmetric” between a European market open to Chinese companies and an Asian giant that closes entire sectors to foreign investors, while supporting large national companies.

The deal would also better ensure intellectual property compliance, prohibit forced technology transfers, and increase transparency in subsidizing Chinese public companies.

Xi Jinping said the agreement “demonstrates China’s determination to promote a high degree of openness” by providing “the strongest institutional guarantees” and “the best prospects for cooperation” for European companies, according to the Chinese state agency. Nine.

“Reciprocity”

“The EU has the largest single market in the world. We are open for business but attached to reciprocity, fair competition and our values,” the head of the European Commission, Ursula von der Leyen, wrote on Twitter.

The sums at stake are considerable. European investments (excluding the UK) in China amount to almost € 150 billion and China’s investment in the EU to 113 billion.

This text would open up crucial Chinese markets: green cars, “cloud”, finance and health, says Brussels. But your signature won’t occur until after the legal and technical finalization of the text, which could take months.

The text must also be ratified by the European Parliament, a process that promises to be complex.

“The talks are far from over, it is only the beginning,” warned German MEP Bernd Lange, chairman of the international trade commission, on Wednesday, speaking of “(…) high expectations”, especially “a lever to fight against forced labor “.

A sensitive point: experts and NGOs accuse the communist regime of imprisoning more than a million members of the Uighur minority in forced labor camps in Xinjiang. According to a US study, at least 570,000 Uighurs were enrolled in a coercive cotton picking program.

“Only words”

The agreement stipulates that Beijing “undertakes … to work towards the ratification of the fundamental conventions of the International Labor Organization (ILO), including those on forced labor,” the European statement said.

An identical formula is included in the free trade agreement with the EU, including the post-Brexit deal with London, notes a European official, showing that Brussels has its own tools to put pressure on China.

But this is not enough to reassure MEPs, who passed a resolution in mid-December condemning the forced labor to which the Uighur, Kazakh and Kyrgyz minorities are subjected.

French MEP Raphaël Glucksmann (S&D) calls for “concrete and verifiable commitments” from Beijing. “No outside witness can enter the companies that exploit Uighur slaves. So these are just words,” he said.

Angela Merkel, whose country holds the rotating EU presidency until the end of this year, has made this political agreement a priority.