EU President Charles Michel (left) attends a virtual meeting on December 30 with Chinese President Xi Jinping and other EU leaders to conclude negotiations on the EU-China investment pact. Given the climate of rising protectionism and geopolitical instability, some level of scepticism about the deal is understandable. But with proper implementation, it won’t be a worthless deal for the EU. Photo: Bloomberg EU President Charles Michel (left) attends a virtual meeting on December 30 with Chinese President Xi Jinping and other EU leaders to conclude negotiations on the EU-China investment pact. Given the climate of rising protectionism and geopolitical instability, some level of scepticism about the deal is understandable. But with proper implementation, it won’t be a worthless deal for the EU. Photo: Bloomberg
EU President Charles Michel (left) attends a virtual meeting on December 30 with Chinese President Xi Jinping and other EU leaders to conclude negotiations on the EU-China investment pact. Given the climate of rising protectionism and geopolitical instability, some level of scepticism about the deal is understandable. But with proper implementation, it won’t be a worthless deal for the EU. Photo: Bloomberg
Aidan Yao
Opinion

Opinion

Macroscope by Aidan Yao

China-EU investment deal must fight scepticism to reach full economic potential

  • China’s enthusiasm for the deal and the reform opportunities it affords are not enough. The EU must overcome scepticism and come fully on board for the deal to shine
  • The agreement is but a tool. Both sides need to demonstrate willingness to learn to use this tool to their advantage

EU President Charles Michel (left) attends a virtual meeting on December 30 with Chinese President Xi Jinping and other EU leaders to conclude negotiations on the EU-China investment pact. Given the climate of rising protectionism and geopolitical instability, some level of scepticism about the deal is understandable. But with proper implementation, it won’t be a worthless deal for the EU. Photo: Bloomberg EU President Charles Michel (left) attends a virtual meeting on December 30 with Chinese President Xi Jinping and other EU leaders to conclude negotiations on the EU-China investment pact. Given the climate of rising protectionism and geopolitical instability, some level of scepticism about the deal is understandable. But with proper implementation, it won’t be a worthless deal for the EU. Photo: Bloomberg
EU President Charles Michel (left) attends a virtual meeting on December 30 with Chinese President Xi Jinping and other EU leaders to conclude negotiations on the EU-China investment pact. Given the climate of rising protectionism and geopolitical instability, some level of scepticism about the deal is understandable. But with proper implementation, it won’t be a worthless deal for the EU. Photo: Bloomberg
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Aidan Yao

Aidan Yao

Aidan Yao is senior emerging Asia economist at AXA Investment Managers. Prior to joining AXA IM, he was a senior financial market analyst at the Hong Kong Monetary Authority for two years. He started his career at the Reserve Bank of New Zealand in 2007, serving as an economist and later senior financial market analyst until late 2011. He holds a master degree in finance (2006) and a bachelor degree in economics and finance (2005) from the University of Otago (NZ). He is also a chartered financial analyst.