European Union and China agree on multi-billion Euro investment deal
In what could turn as an embarrassment for the Narendra Modi government which has been trying to isolate China at the global stage, the European Union has arrived at a landmark multi-billion-Euro investment deal with Beijing.
FollowIn what could turn as an embarrassment for the Narendra Modi government which has been trying to isolate China at the global stage, the European Union has arrived at a landmark multi-billion-Euro investment deal with Beijing.
The new deal, which was announced in the presence of German chancellor Angela Merkel, European Commission president Ursula von der Leyen and Chinese president Xi Jinping over video conferencing, offers business opportunities for firms on European and Chinese firms.
The deal that caps seven years of negotiations will enable the European Union to rectify the trade imbalance with Beijing to an extent.
The multi-billion-Euro deal gives European firms improved access to sectors like automotive, private healthcare, cloud computing and ancillary services for air transport.
According to the European Union, China has committed to an "unprecedented level of market access" for EU investors, giving European businesses certainty and predictability for their operations.Â
The Comprehensive Agreement on Investment will also significantly improve the level playing field for EU investors by laying down clear obligations on Chinese state-owned enterprises, prohibiting forced technology transfers and other distortive practices, and enhancing the transparency of subsidies.Â
In a statement, the European Union said: "The Agreement also includes important commitments on environment and climate, including to effectively implement the Paris Agreement, and on labour standards. China has committed toÂ
effectively implement ILO Conventions it has ratified, and to work towards the ratification of the ILO fundamental Conventions, including on forced labour".
The deal could see resistance from the incoming Joe Biden administration. The President-elect's transition team has already made it clear that it wants a multilateral alliance involving the EU to pressurise Beijing over human-rights and trade.
Also unhappy are European Parliament members who aren't convinced of China's intent.
European Parliamentarian Reinhard Bütikofer took to Twitter to say, "Chinese official sources say the agreement was "signed", EU sources say "concluded in principle the negotiation". Beyond legalese talk, there is an investment protection part yet to be negotiated within two years after "signing", also."
"EU leaders do know that the agreement language on ILO and forced labour is not worth the ink. They are not stupid. But we, the people, haven't been able yet to turn it into a concern of high political relevance to them. We will work on that. And if we all do our best, EP (European Parliament) might say NO."
