On Wednesday, EU and China President Xi Jinping signed a deal. The deal is for business purposes. The deal is between the top European Union officials and the Chinese Government. Moreover, it will develop huge opportunities for European companies. On the other hand, this will cause distress to the new American Administration. The deal took place in a video conference participated by Xi Jinping, EU president Ursula von der Leyen, and EU Council President Charles Michel. Besides, the French and German presidents took part too.
The EU president claims that; “We are open for business but we are attached to reciprocity, level playing field, and values”. Furthermore, it would be to reinforce the relationship between the EU and China.
What is the deal about?
Meanwhile, during the conference, they only discussed the process. Eventually, needs months to seal the deal, as it requires legal review and translation before the approval of the EU council. Besides, approval from the European parliament too. But on the other hand, human rights got against them.
So basically the deal occurred after China’s commitment to pursue ratification of the International Labor Organization’s rules on forced labor.
EU wishes that this deal can help to improve the imbalance in market access and generate fresh investment opportunities for European companies in China. Having said that, this will guarantee equal importance in the economy. However, EU companies are facing heavy competition in China. Resulting in government support and easier access to financial matters.
Why human rights play a major role here?
Regarding the issue, the EU expresses the restraint on freedom of expression, access to information, and intimidation and surveillance of journalists, as well as detentions, lawyers, and intellectuals in China.
Nevertheless, the EU is very much explicit to China contrasted to other foreign investments. “This is true as regards foreign investment in general. China now commits to open up to the EU in several key sectors” claims the EU.
Speaking of, the EU considers China as the second-biggest trading partner, followed by the US. As everyone knows, China plays a major role in every country. Well, keeping coronavirus aside, the economy still does its part.
Is it profitable?
Accordingly, the 27-nation bloc says that the agreement is beneficial for China as it could enhance the opportunities in various areas. Such as electrical gadgets, private hospitals, telecoms, cloud, and financial services, international maritime transport, and air transportation. On the other hand, the EU also gets its perks too. Believes that it would settle disputes and China’s development.
It also clears out the rules against forgeries; such as the forcible transformation of Chinese technologies in exchange for market access.