China insiders see ‘no progress’ on ending subsidies, as clock ticks on EU investment deal talks
- China has moved to solidify the grip of the state on its economy, while simultaneously trying to negotiate an investment treaty with the European Union
- Chinese analysts see little room for compromise, with Brussels demanding material reform and Beijing locked on its own path
This is the second in a series of five articles analysing the potential for an EU-China investment treaty, looking at how the negotiations are viewed in political circles within China. You can read part one in the series here and part three here, part four here and part five here.
As talks over a European Union-Chinese investment treaty reach the business end, advisers and analysts in China fear negotiations are drifting further from the economic path chosen by Beijing.
This week’s 31st round of talks for an investment deal formally known as the EU – China Comprehensive Agreement on Investment comes more than two weeks after the 30th, during which nothing of substance was achieved. It also comes as bilateral tensions simmer over the coronavirus pandemic and the national security law in Hong Kong.
It is not a problem for China to agree or make compromises and on principles on some specific or technical issues, but we have more impediments to make substantial changes or meet the other side’s demands
This is likely to be the last round of talks before the European Union breaks for summer holiday, meaning progress is imperative.