EU, China strike deal

THE EU and China have struck a political deal on a comprehensive investment agreement after seven years of talks, European Commission President Ursula von der Leyen announced yesterday. Chinese President Xi Jinping spoke to French President Emmanuel Macron, German Chancellor Angela Merkel and Von der Leyen via a video conference.

The agreement would offer European companies access to previously closed or tightly regulated Chinese markets and ease Chinese investment in Europe. It would also set out provisions for a level playing field to prevent state assistance from undercutting competition, and sustainable development provisions. In the deal, China also pledges to take steps to ratify International Labour Organisation conventions on forced labour.

China has agreed in principle to open markets such as new energy vehicles, private health care and financial and cloud services to European investment. Xi said the agreement could contribute to the recovery of the world economy and promote trade.