We have heard many US/Trump threats to China as “punishment” for Covid 19. “De-coupling” from China is his big policy goal and it is failing. Today the FT reports that China and the EU are rushing to meet year end deadlines to conclude a long-awaited investment agreement that will strengthen strategic ties between the two parties.
The FT says that “the EU has long yearned for an agreement to allow its companies wider entry to the China market”. Issues that are being resolved include market access and sustainable development. China’s goals in the talks include guaranteeing rights to invest in parts of the EU economy.
The comparison between US and EU is stark. Trump has tried to force trade concessions through punitive tariffs whereas the EU has prioritised negotiation and reform of the WTO to adapt it to China’s economic model.
Tomorrow a comment on Beijing’s current significant focus on “the control of the expansion of capital”. What does it mean?