China, EU ink investment deal
BEIJING. — The EU and China have announced a long-awaited deal on an investment treaty, in a move that is aimed at opening up lucrative new corporate opportunities but risks antagonising president-elect Joe Biden’s incoming US administration.
The accord was confirmed by Chinese President Xi Jinping and EU leaders including European Commission president Ursula von der Leyen on Wednesday, bringing seven years of often difficult negotiations to a successful close.
Valdis Dombrovskis, the EU’s trade commissioner, told the Financial Times that the deal contained the “most ambitious outcomes that China has ever agreed with a third country” in terms of market access, fair competition and sustainable development.
“We expect European businesses will have more certainty and predictability for their operations,” he said.
“We have some very welcome changes to the rules of the game, because for a long period, trade and investment relations with China have been unbalanced.”
But the accord may create friction with the incoming Biden administration in the US, which has stressed the need for transatlantic co-operation to put pressure on Beijing.
On Wednesday, an official in Mr Biden’s transition team said: “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.”
Meanwhile, John Ullyot, a spokesman for the US National Security Council, said: “Our allies and partners increasingly agree that the obvious approach when dealing with Beijing is ‘distrust and verify.’ Any commitment from (China) that is not accompanied by strong enforcement and verification mechanisms is merely a propaganda win for the (Chinese Communist party).” Rights activists will also scrutinise the deal closely over allegations that China uses Uighur Muslims detained in large numbers in Xinjiang province as forced labour. Beijing denies the claims.
A backlash began even before the deal was unveiled. Reinhard Bütikofer, chair of the European parliament’s delegation for relations with China, late on Tuesday branded it a “strategic mistake”. — FT.