German Chancellor Angela Merkel and French Emmanuel Macron have reportedly approved an EU’s investment deal with China, according to SCMP. Germany, currently holding the EU Council’s presidency, announced that the investment agreement will be discussed among the 27 countries’ representatives to the bloc on Friday.
- The investment deal between China and the EU is a blow to US president-elect Joe Biden’s hope of reviving the transatlantic partnership in a bid to take on China’s growing threats.
- China has reportedly made concessions with the EU on sectors such as financial services, manufacturing, and real estate.
- China secured the EU’s agreement to open up its renewable energy sector, which has been opposed by Eastern European countries, including Poland and Lithuania, which rely on US support to deter Russia’s threat.
- It is argued that the EU negotiators have achieved what they have been calling on China to do for seven years.
- Suggestions are that the EU-China investment agreement can be “fast-tracked” and will not need to be approved by the member states.
- An EU Commission spokesman said progress had been made in several areas, but there are outstanding matters, and talks are continuing this week.
- The deal with China won’t affect EU’s intention to build a close partnership with the U.S-Reinhard Butikofer, European Parliament’s China delegation chair
The Euro and Chinese Yuan are declining against the dollar. EURUSD is down 0.19%, USDCNY is up 0.04%
