The agreement is intended to facilitate market access for European companies in China
China and the EU have basically agreed on a future-oriented investment agreement. After seven years, Commission President Ursula von der Leyen and the Chinese state media announced the conclusion of the negotiations on Wednesday. The EU leadership with von der Leyen and Council President Charles Michel as well as Chancellor Angela Merkel for the German EU Council Presidency and French President Emmanuel Macron spoke via video with China's President Xi Jinping.
The agreement is intended to improve market access for European companies in China, ensure fair competition and open up new business opportunities. It is the most comprehensive attempt by the EU to date to put the economic relationship with the emerging, second-largest economy on a new footing. But critics don't go far enough. The future US administration also showed certain reservations about Europeans going it alone.
“The world after the pandemic needs a strong relationship between the EU and China,” wrote Commission President von der Leyen on Twitter. “But that requires cooperation and trust – also in trade and investment.” The EU has the largest open market in the world. “But we value reciprocity and fair competition.” China's president said the deal demonstrates “China's determination to open up further.” The breakthrough came after China made new promises on the labor rights issue.
