Deal brings 7 years of negotiations to a successful close, but risks EU tensions with US
The EU and China have unveiled a long-awaited investment treaty that aims to open up lucrative new corporate opportunities but which risks antagonising president-elect Joe Biden’s incoming US administration.
The accord was confirmed by China’s 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 close.
Valdis Dombrovskis, the EU’s trade commissioner, told the Financial Times 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, adding that “for a long period, trade and investment relations with China have been unbalanced”.