China denies it is using investment to undermine EU

CHINA has denied that it is trying to split the EU by investing in Eastern European states, with Premier Li Keqiang stating he wants to work with the bloc on issues from climate change to trade.

Diplomats in Brussels have said that tensions over trade, investments and minority rights mean China and the EU may fail to agree a declaration at a summit tomorrow aimed at cementing ties. That could dent European efforts to gain greater access to Chinese markets.

In a column for today’s edition of the German newspaper Handelsblatt, extracts of which were released yesterday, the Chinese premier denied accusations that Beijing was trying to divide the EU. “We emphatically support the European integration process in the hope of a united and prosperous Europe,” wrote Mr Li.

He said Beijing’s close co-operation with eastern European states was “advantageous for a balanced development within the EU”.

Concerned by potential Chinese dominance of strategic European industries, the EU is trying to coax Beijing to open up its markets and has tried to get it to commit to removing what Brussels sees as unfair barriers to trade.

Mr Li wrote that China was ready to work closely with Europe in upholding the Paris Climate Agreement, supporting sustainable development, retaining the international nuclear deal with Iran and fighting terrorism. He also said it wanted to exchange views on reforming the World Trade Organisation.

The EU is China’s largest trading partner. An increase in Chinese takeovers in critical sectors in Europe and an impression in Brussels that Beijing has not kept its promise to stand up for free trade has complicated talks before the summit.

‘We emphatically support the European integration process in the hope of a prosperous Europe’