EU agrees investment deal with China to rebalance ties
BRUSSELS - The European Union and China agreed on Wednesday to an investment deal that will give European companies greater access to Chinese markets and help redress what Europe sees as unbalanced economic ties.
The agreement was negotiated for nearly seven years and is likely to take at least another year to enter into force. It forms part of a new relationship with China, which the EU views as both a partner and a systemic rival.
European firms will gain permission to operate in China in electric cars, telecom cloud services and certain activities linked to air and maritime transport, such as ground handling.
Joint venture requirements will fall away for the automotive sector, many financial services, private hospitals, advertising, real estate and environmental services, such as sewage.
Companies that could benefit include Daimler, BMW, Peugeot, Allianz and Siemens, all with a large presence in China.
China will pass laws to ban forced transfer of technology from foreign companies, and has pledged to be more transparent on subsidies and bar state-owned enterprises from discriminating against foreign investors.
In Paris, French president Emmanuel Macron said relations between the EU and China had strengthened in recent years and would continue to do so.
Mr Macron offered to visit China in the coming months along with German Chancellor Angela Merkel to discuss other areas of cooperation.
The deal brings Europe a degree of parity with the United States, which has struck a “Phase I” trade deal with China, and will undoubtedly be a key issue in future transatlantic talks. The EU has been keen to portray the agreement as a step towards forging multilateral rules.
“The Biden-Harris administration looks forward to consulting with the EU on a co-ordinated approach to China's unfair economic practices and other important challenges,” an official from US president-elect Joe Biden's transition team said.
The deal includes commitments on climate change and labour rights, including forced labour, a first for China.