The EU and China have moved closer to an investment agreement after seven years

The EU and China have moved closer to an investment agreement after seven years

The European Union (EU) and China announced that they were close to concluding an investment agreement after seven years of negotiations. Its aim is to ensure that European companies in China can do business in the local market under the same conditions as domestic ones. Negotiators on both sides are approaching a breakthrough in the talks this week after China made some concessions on European companies' access to its financial, manufacturing and real estate sectors, the Hong Kong newspaper South China Morning Post reported.

The negotiations are in the final phase

On the other hand, the EU has committed itself in principle to giving China access to the renewable energy sector, according to a diplomatic source from Brussels. "The negotiations have entered their final phase," Wang Wen-pin, a spokeswoman for the Chinese Ministry of Foreign Affairs, told reporters in Beijing. In Brussels, EU officials again informed the ambassadors of 27 member states that the agreement was "95%" closed, citing sources they did not want to be named. Europe hopes to reach a "political agreement" by the end of the year, but obstacles remain to China's commitment to labor rights, EU sources say. "We are not quite there yet, but it is certainly possible that if things move forward as we do now, we can close this year," said EU Vice-President Valdis Dombrovskis. Brussels insists that it wants to ensure the same business conditions for its companies in China as the EU guarantees to Chinese companies on its territory. However, the Union will not accept the unfavorable terms of the agreement just to complete the negotiations. The agreement would be a major impetus for both parties and will strengthen their economic ties before the arrival of new US President Joe Biden in the White House in January. President Donald Trump has led a trade dispute with China for years. The EU chief executive said the Chinese were "more flexible than ever" and "sent signals that they wanted an agreement before the new US administration took power."