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Image source,Reuters
On Wednesday (December 30), Chinese President Xi Jinping met with EU leaders, German Chancellor Merkel, and French President Macron via video link. China and the EU jointly announced the completion of the investment agreement negotiations.
This agreement is expected to allow European companies to better enter the Chinese market and improve competition conditions, but it has yet to wait for the approval of the European Parliament to take effect.
German Chancellor Merkel has always been the main promoter of this agreement and, despite criticism and opposition from many quarters, she played a key role in pressuring EU countries to finalize the long-delayed EU investment deal. China.
It is expected to benefit companies such as the big German automakers. Germany is currently the rotating presidency of the European Council.
The official Chinese news agency Xinhua reported that the China-EU Investment Agreement “will make an important contribution to building an open world economy in the two main markets of China and Europe.”
European Commission President Von der Lein also previously stated on social media that China and the EU have “in principle” completed negotiations on an investment deal.
Negotiations on this investment agreement started in 2014, but due to some differences, the negotiations have been stalled for many years. The increasingly tense trade relationship between the United States and China may have helped China shift its position.
China has long been cautious about allowing foreign companies to gain greater access to the Chinese market and has imposed various restrictions on the operations of foreign companies. For example, technology must be shared, and many industries require foreign companies to operate joint ventures with local companies.
Under the disclosed agreement, China will prohibit forcing foreign companies to transfer technology, and promises to be more transparent on subsidies, and will also prohibit state-owned companies from discriminating against foreign investors.
Central and British Europe
Shortly before the intense negotiations on this deal, Britain and the European Union announced on December 24 that they had reached a post-Brexit trade deal.
The signing of the China-EU Investment Agreement will reportedly allow China to open up the manufacturing, construction, advertising, air transport and telecommunications industries to EU companies, and open up cloud computing to some extent.
Image source,Reuters
During the Trump administration, the partnership between the EU countries and the United States deteriorated.
One of the convictions was that China asked to enter the EU energy market in exchange, but some member states opposed it. Considering national security sensitivity, the deal is expected to allow China to gain a small share of access to the EU’s renewable energy sector on a reciprocal basis.
The agreement also aims to remove obstacles for EU companies to invest in China, such as joint venture requirements and restrictions on the share of foreign capital in certain industries.
Earlier, according to Reuters reports, EU officials said that the ambassadors of EU member states in Brussels discussed the deal on Monday (December 28) and no country has major objections to it.
Once the two parties reach an agreement, it will take several months for it to be translated into legal provisions and approved by the European Parliament. This process may not begin until the second half of 2021.
Image source,Reuters
The leaders of the European Union and China held a video meeting to jointly announce the completion of the negotiations on the China-EU Investment Agreement.
Chinese Foreign Ministry spokesman Wang Wenbin said on Tuesday that with the joint efforts of China and the EU, significant progress has been made in the negotiations during this period and the prospects can be expected: “I hope that the agreement can be completed as soon as possible. “
“The China-EU investment agreement negotiations are currently the most important agenda in China’s economic and trade relations,” he told a foreign ministry news conference.
Image source,fake images
Does Biden’s team object?
On Monday, the European Commission reported on the progress of negotiations with Beijing, including the central issue of Chinese labor rights.
This is a controversial issue. Previously, there were reports that China used large numbers of Uighur Muslims detained in Xinjiang for forced labor. Beijing denied these accusations.
Under the agreement, China must commit to abide by the International Labor Organization’s regulations on forced labor.
This agreement between the EU and China is expected to create friction with the new administration of US President-elect Joe Biden. In the past four years, Trump withdrew from the World Trade Organization and used “tariff sticks” to hit or threaten the United States’ European allies, which has strained relations between the United States and the EU.
Earlier this month, the European Union announced a transatlantic strategy, urging the United States to cooperate with it to address the “strategic challenge” presented by China.
Jake Sullivan, who was nominated by Biden as a national security adviser, tweeted the news of the China-EU deal last week and wrote publicly that the Biden administration “welcomes the first consultations with our European partners to discuss our Common concerns about behavior “.
Since 2018, China and the United States have been in a trade war. The Trump administration views some Chinese tech companies as a threat to national security.
Due to issues such as China’s implementation of the National Security Law in Hong Kong, relations between the EU and China have also been tense this year. European Union countries accuse China of spreading false information about the new corona virus that also upset Beijing.
