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The EU and China have concluded their long awaited Investment Treaty. EU’s Trade Commissioner, Valdis Dombrovskis said the deal contained “the most ambitious outcomes that China has ever agreed to with a third country”.
The Treaty will create friction with the Biden administration which had stressed the need for transatlantic co-operation “to put pressure on Beijing”.
Industries where the EU has secured improved access terms include automotives (including electric vehicles), private healthcare, and cloud computing.
For the EU, progress has also been achieved on subsidy transparency and rules against pressured technology transfer – two previous contentious areas. For Beijing, the deal will secure access rights to existing markets and new openings in manufacturing and renewable energy.
This is a setback for US – as a former US official said – the Treaty validates “China’s view that its economy is an irresistible force despite Hong Kong, Xinjiang, Taiwan and India”.
This has significant geo-political implications for the US, the EU and China.