French President Emmanuel Macron attends an EU-China video-conference meeting along with Chinese President Xi Jinping, German Chancellor Angela Merkel, European Commission President Ursula von der Leyen and European Council President Charles Michel, at the Fort de Bregancon in Bormes-les-Mimosas, France, on Wednesday. – REUTERSThe European Union and China on Wednesday approved"in principle" a major investment deal after seven years of painstaking negotiations.
The deal gives China a diplomatic win and potentially draws the Europeans into its camp before Biden takes office. For Beijing, Chinese tech giant Huawei has been shut out of the 5G equipment market in many EU countries, and Beijing has demanded guarantees of access to public markets in the bloc and to sectors such as telecommunications and energy infrastructure.Brussels says the pact will"help rebalance the trade and investment relationship between the EU and China" and provide an"unprecedented level of market access" for European investors.
Moreover, without substantial improvements on labour standards, Europe will also lose credibility as a"normative and principled power", Huotari said.