Chinese and European leaders announced at a virtual summit Wednesday that the two sides have concluded the negotiations on a bilateral agreement on investment that will grant European companies better access in the world’s second-largest economy.
The summit was held via video link between Chinese President Xi Jinping, and German Chancellor Angela Merkel, French President Emmanuel Macron, European Council President Charles Michel, and European Commission President Ursula von der Leyen.
Under the agreement, China would open up multiple industries to EU firms, including manufacturing, construction, advertising, air transport, maritime services, telecoms and, to some extent, cloud computing, Reuters reported, citing unnamed EU officials.
The two sides agreed on a timeline to finalize the legal text, which will take several months, according to the Reuters report. Once concluded, the agreement will have to be ratified by all EU member states before it could come into force.
The European Union Chamber of Commerce in China hailed the agreement in a statement, saying that it expected Brussels and Beijing to build on the political agreement and “deliver an enforceable pact.”
“The agreement will not come into force until final texts are developed and then ratified by both sides, which will likely require overcoming additional hurdles,” the statement said.
“We eagerly await the release of the details of this political agreement, and hope to find a robust and bold conclusion. A strong agreement would be a powerful statement to show that constructive engagement can produce results,” said Joerg Wuttke, the chamber’s president.
Contact reporter Lu Zhenhua (zhenhualu@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
