EU-China 'likely to close investment deal this week'
China and the European Union are likely to close an investment deal this week, according to reports on Tuesday.
The deal would give EU firms better access to the Chinese market, improve competition conditions and protect EU investment in China. According to a number of media reports, it would also open up China's manufacturing sector to EU companies, as well as construction, advertising, air transport and telecoms.
A sticking point was China's demands for access to the EU's energy market given sensitivities over national security. The deal is expected to give Beijing access to a small part of the European renewable energy sector on a reciprocal basis.
Any deal will have to be ratified by the European parliament, which may not begin until the second half of 2021.
The investment agreement also bans forced transfer of tech by EU firms that establish themselves in China, and includes policies to discipline Chinese state-owned companies when it comes to competition and subsidies.
China asked for access to the EU’s energy market and the European Commission offered a small part of the renewable energy sector, but only on a reciprocal basis.
The talks on the deal began in 2014 but have been stuck for years on EU claims that China was failing to come through on promises to lift curbs on EU investment.
“The talks are about to be concluded. It’s looking good. There are only some minor details left which need to be hammered out,” an unnamed EU official told Reuters.
“As things stand now, the political agreement between the EU and China will be sealed on Wednesday.”
“We get much better market access and the protection of our investments in China. Better market access is something we have been working for for many years, and the Chinese have made quite a big step towards us,” a senior EU official said.
Chinese foreign ministry spokesman Wang Wenbin told reporters on Tuesday that talks had made huge progress and that China hopes a deal can come to fruition “at an early date”.