Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

EU agrees ‘in principle’ to an investment agreement with China

EU agrees ‘in principle’ to an investment agreement with China

German Chancellor Angela Merkel and French President Emmanuel Macron are understood to be in agreement for the investment deal with China to go ahead, said a source.

The European Union has agreed “in principle” to an investment agreement with China, a high-level diplomatic source in Brussels told the South China Morning Post on Thursday, in what would be a big win for Beijing in the face of tattered relations with the US. The EU’s two most influential leaders, German Chancellor Angela Merkel and French President Emmanuel Macron, are understood to be in agreement for the deal to go ahead, a second source briefed on the negotiation said.

Germany, which currently holds the presidency of the EU Council, announced that the investment agreement with China would be discussed among the 27 countries’ representatives to the bloc on Friday.

The politically symbolic move between China and the EU comes just a month before Joe Biden will become the US president, dealing a blow to his hope of reviving the transatlantic partnership in a bid to take on China’s growing assertiveness.

The European Commission, the executive arm of the EU that is in charge of trade talks, has secured breakthroughs as China agrees to open up its market in multiple sectors for EU businesses, the sources said.

China is understood to have made concessions on sectors like financial services, manufacturing and real estate.

In return, China secured the EU’s agreement to open up the renewable energy sector for Chinese investment, a clause that has drawn opposition from Eastern European member states including Poland and Lithuania, which rely on US support to deter the threat from Russia, the source said.

“It is also debated whether it is the right moment to sign a deal with China, given the incoming Joe Biden presidency that will likely focus on a transatlantic alliance to counter the rise of China,” the source said.

“But overall, it is agreed that the EU negotiators have achieved what the EU has been calling on China to do for seven years. China did make major concessions,” the source added. “That’s why the European Commission made the political decision in principle to conclude the talks of the agreement with China.”

Earlier on Thursday, the Chinese ambassador to the EU, Zhang Ming, told the Financial Times that the talks “are now in the final stage”. Referring to President Xi Jinping, he said: “It’s quite unusual for a Chinese head of state to give such … attention to an agreement under negotiation.”

A spokesman for the European Commission said: “The EU-China investment talks are intensive. Progress has been achieved in a number of areas. There are still some important outstanding matters and talks are continuing this week.

“The EU remains committed to the end of year deadline for conclusion of the negotiations, provided we have a deal worth having. We will not put speed over substance.”

Reinhard Bütikofer, who chairs the European Parliament’s China delegation, said of the possibility of an EU-China deal on Twitter: “It would be an interesting development, if EU would ignore concerns about forced labour in China and rush to conclude with China just before the Biden transition opens opportunities for better and stronger transatlantic cooperation on China.”

The diplomatic source, however, said that the deal with China would not affect the EU’s intention to build up a closer partnership with the US.

There are also suggestions that the EU-China investment agreement can be “fast-tracked” and will not need to be approved individually by the national parliaments of the member states, as is the practice for trade deals.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×