To boost the fragile economy ravaged by COVID-19, the EU and China are close to reaching a long-awaited economic investment deal.
China-EU Investment deal poised to be completed
It seems China and the European Union have solved their differences with this new deal.
It promises to end this week with the European Union and China opening up their markets to make trading better and enhance economic conditions.
This deal has been in the pipeline for about seven years but has also suffered several setbacks, both political and economic. The increase in economic disagreements between the US and China may have convinced the Chinese to look elsewhere and change their rigid position, sources said.
This deal couldn’t have come sooner with the just concluded Brexit UK trade deal which was announced December 25. A key thorny issue was China’s insistence that access to the EU’s energy market must be provided, something that is sensitive to EU nations because of security concerns.
Additionally, this deal promises to allow China access to some part of the EU renewable energy industry as a sign of good faith. When the deal is completed, it must be certified by the EU parliament, a procedure which is not likely to start until mid-2021.
The thorny topic of workers’ rights in Beijing
The European Commission has said talks with China which includes the thorny topic of workers’ rights is progressing smoothly.
This thorny issue needs to be addressed due to rumors that China uses Uighur Muslims kept in huge population in certain provinces as forced laborers, China has continuously denied these allegations.
Under this deal, China will have to promise to abide by the International Labour Organization’s laws on forced working conditions.
This EU-China economy deal will likely be frowned upon when US president-elect Joe Biden is inaugurated next year. Earlier in December, the EU published an international blueprint in which they pleaded with the US to work with the Chinese.