Zhang Ming

Opinion | China-EU investment deal shows cooperation outweighs competition in bilateral relationship

While the agreement won’t resolve all the trade and economic issues between Beijing and Brussels, it provides another platform for consultation on an equal footing and with mutual respect, which serves the goal of multilateralism

Reading Time:3 minutes

Why you can trust SCMP

Chinese President Xi Jinping attends a video conference on December 30 with EU leaders to conclude long-standing negotiations on an EU-China investment agreement. China has committed to a negative-list approach to all sectors, services and non-services alike. Photo: Xinhua

Zhang Ming

Published: 9:15am, 13 Jan 2021Updated: 9:22am, 13 Jan 2021

After 35 rounds of talks, the marathon negotiations on the China-EU investment agreement have passed the finishing line. This encouraging landmark achievement is thanks to all our colleagues and friends who have supported the negotiations over the past seven years.

To them, we should give credit for an agreement that can foster certainty in uncertain times and contribute to the global goals of sustainability and multilateralism.

The agreement will help revitalise China-EU cooperation. This deal, inspired by state-of-the-art international economic and trade rules, will increase European Union investors’ access to a market of 1.4 billion consumers.

It establishes an FDI management system that provides equal conditions for foreign and domestic investors, as in EU agreements with other major economies, as well as a negative list, or specific arrangements for sectors and industries, as other EU partners have.

China has committed to a negative-list approach to all sectors, services and non-services alike. And the EU commits to high-level market access for Chinese investors.

00:42

‘Major progress’ made on China-EU investment deal negotiations, says Beijing’s foreign ministry

The agreement sets out balanced and comprehensive rules on a level playing field, covering a wide range of important issues such as state-owned enterprises, transparency of subsidies, transfer of technology, and standard-setting. The rules apply to both parties. This could make the business environment more predictable and give investors a greater sense of certainty, which is needed more than ever amid the pandemic fallout.