Chinese and European Union leaders agreed on Wednesday to make it Operating companies on each other’s territory is easy, a significant geopolitical victory for China at a time when it has become increasingly isolated due to criticism of its human rights record and epidemic control.
But the landmark agreement faces political opposition in Europe and Washington in Washington that could eventually derail it, explaining the difficulties of dealing with the dictatorship. A superpower that is both an economic competitor and an attractive market.
A large group in the European Parliament, which must ratify the agreement before it can be implemented, opposes the agreement on the grounds that it does not do enough to stop human rights abuses in China. In addition, President-elect Joseph R. Biden Jr.’s top aide has indicated that the incoming administration is not happy with the deal.
German Chancellor Angela Merkel has made the deal a priority because of its importance to German carmakers and other manufacturers with large operations in China.
The agreement removes a number of sanctions imposed on European companies operating in China, in which they operate joint ventures with Chinese partners and share sensitive technology.
The agreement also opens up China to European banks and includes provisions to reduce secret government subsidies. Foreign companies often complain that the Chinese government secretly subsidizes domestic companies to give them a competitive advantage.
The agreement “will significantly improve the competitive environment for Chinese European companies,” Hildegard Mલller, president of the German Association of Auto Industries, said in a statement before the announcement. “It will give a new impetus to the global, rules-based framework for trade and investment.”
Chinese leader Xi Jinping also gave priority to meeting the agreement, giving the negotiators enough leeway to persuade the Europeans to move forward.
Wednesday’s announcement was made via a video call involving European Commission Presidents Mr Xi and Ursula von der Leyen to agree in principle on the deal.
European officials said progress had been made in mid-December when China, with significant concessions, agreed to make a strong commitment to comply with international standards on forced labor. China also agreed to step up efforts to combat climate change.
Mrs von der Leyen said the agreement “would provide unprecedented access to the Chinese market for European investors, developing our businesses and creating employment.”
“It will also commit China to ambitious principles of stability, transparency and discrimination,” he said in a statement.
Now the termination of this agreement is a diplomatic victory for China, which has seen internationally controlling its coronavirus epidemic in Hong Kong and mainly the Muslim province of Xinjiang and seeing its sabotage.
Those issues – and the guarantee of genuine Chinese promises for foreign investment – became the focus of opposition to the agreement as the final details were made public. For the Chinese, the deal showed that the country does not face significant diplomatic isolation regarding its human rights management.
Business and Economy
Before Mr Biden took office in January, China also appeared eager to reach an agreement, calculating that closer economic ties with Europeans could advance the new administration’s efforts to move forward with a collaborative strategy to challenge China’s trade and other policies.
Mr Biden said in a speech on Monday that on any issue of importance to US-China relations, the United States was “stronger and more effective as we move forward through nations that share our vision for the future of the world.” ”
Currently, he said, there is “a huge vacuum” in American leadership. “We need to regain the trust and confidence of a world that has begun to find ways to work around us or without us.”
The White House also opposed the deal, but the Europeans had little advantage in blocking it. The Trump administration this week announced new sanctions on those affiliated with the People’s Liberation Army – months of trying to isolate China and its companies, which will only be reprimanded by countries that are willing to engage the Chinese.
The decision by Europeans to ignore the objections to the Biden camp was an indication that relations with the United States would not automatically return to the respective Bonhomie during the Obama administration.
President Trump’s penance for a burning bridge with longtime allies has prompted Europe to largely ignore the United States because it has trade agreements with countries such as Japan, Vietnam and Australia. European diplomats said this week that while they hoped for a more cooperative relationship with the Biden administration, they would put their interests before the U.S. Could not keep secondary in the election cycle.
Members of the European Green Party, among others, say the deal is not enough to open up China’s markets, honor past commitments to trade and the environment, or eliminate human rights abuses, including forced labor and mass Uighurs. Other Muslims in the western region of Xinjiang.
Opponents will be able to gather enough votes to block ratification in the European Parliament.
Negotiations for China and the European Union have been working on a deal for almost seven years, but there has been a sudden surge in progress since Mr Byden defeated Mr Trump in the election.
Unlike Mr. Trump, who has always been hostile to Europe, Mr. Biden expects that he will try to cooperate with the European Union to curb China’s ambitions, but that effort could take several months to implement.
United States law prohibits members of the incoming administration from negotiating directly with foreign officials. Until then, Mr Biden will not be sworn in on January 20. In an interview in early December, Mr Biden said he planned a full review. Liaise with allies in Asia and Europe to develop a coherent strategy before changing trade relations with China and US trade conditions.
He said, ‘I will not make any immediate move.’
In the meantime, Mr Biden’s advisers have used public statements to warn European officials against any hasty action and to persuade them of the benefits awaiting coordination with the new American administration.
Mr. Biden’s selection as National Security Adviser, Jack Sullivan, Wrote On Twitter this month the new administration “welcomes initial consultations with our European partners on our general concerns about China’s economic practices.”
Chinese officials have pushed for the deal to be kept on track in recent weeks, especially after protests erupted in Europe.
As the talks stalled last week, China’s Ministry of Commerce said in a statement that the agreement would “be of great importance for the recovery of the global economy.” It said the two sides had to be prepared to “meet in the middle”, but that China would “protect its own security and development interests”.
Despite the provisions of the agreement on forced labor, Chinese officials have repeatedly denied that the country is involved in the transaction, despite evidence from Xinjiang or elsewhere. The severity of this denial raises questions as to how China can be expected to honor its commitments to protect workers’ rights.
“The so-called coercion in Xinjiang is a complete lie,” Foreign Ministry spokesman Wang Wenbin said recently. “Those responsible for such despicable blasphemy should be condemned and held accountable.”
The European Chamber of Commerce in China welcomed the agreement, although with a note of caution, said it could still face hurdles before both countries ratify it. “A strong agreement would be a powerful statement to show that a constructive alliance can bring results,” Chamber President Jurg Vattak said in a statement.
Ana Swanson From Washington to Washington, Keith Bradshare from Beijing and Monica Pronkzuk from Brussels contributed to the report.
