EU seeks to rebalance China ties with investment deal

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The agreement has been nearly seven years in the making and is likely to take at least another year to enter into force.

The deal brings Europe a degree of parity with the United States, which has struck a"Phase I" trade deal with China. Jake Sullivan, President-elect Joe Biden's pick as national security adviser, tweeted last week that the new U.S. administration would welcome early consultations with Europe on China's economic practices.

The deal was struck after an online meeting between the heads of EU institutions and Chinese President Xi Jinping. The agreement, he said, showed China's determination and confidence to open up. European Commission President Ursula von der Leyen called the agreement an important landmark in the EU's relationship with China.

"No major power, not least China, gives anything for free, so there will be a trade-off. It's just not in the agreement," he said.

 

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