OpinionChina-EU investment deal: fruits of Brussels-Beijing partnership outweigh growing tensions

The EU sees the agreement as part of a constructive long-term approach, and the decision to push forward with it reflects China’s calculus that the window to seal the deal might not remain open indefinitely, given the impending Biden presidency

3-MIN READ3-MIN

Despite post-pandemic tensions, Beijing and Brussels recognise they have much to gain from their partnership. Photo: Shutterstock

Published: 3:30am, 3 Jan 2021Updated: 3:34am, 3 Jan 2021

A common frustration of commuters is lengthy waits only to find that two trains or buses arrive at once. This is a predicament the European Union can relate to in the last week of December, with two key trade and investment deals finally agreed after years of difficult negotiations.

It is the politics, not the economics, of the two agreements that is fascinating. The December 24 UK-EU trade deal was widely anticipated and secured once British Prime Minister Boris Johnson decided it was too risky – even for his high-wire style of politics – not to agree a post-Brexit trade deal with the EU amid a once-in-a-century pandemic.

More of a surprise was the timing of the agreement, subject to ratification by the European Parliament, on December 30 of the EU-China Comprehensive Agreement on Investment which will see European and Chinese firms get better access to each market.

That deal, discussed since 2014, suddenly developed new momentum around Christmas despite the wider chill in bilateral relations. Only a few weeks ago, the EU urged a joint initiative with the United States to address “the strategic challenge presented by China’s growing international assertiveness”.

Late December is a peculiar point in the diplomatic calendar for such an unscheduled breakthrough, with no negotiating deadline to force the issue as there was with Brexit. Much of the sudden urgency to move the deal forward reflects Beijing’s desire to get it finished before US President-elect Joe Biden’s inauguration.

China’s calculus here is at least twofold. First, it is aware the incoming Biden team has concerns about the agreement. One of Biden’s worries is that some Chinese companies might gain a stronger foothold in Europe by using Uygur Muslim forced labour for their products.