Exclusive | China tried to punish European states for Huawei bans by adding eleventh-hour rule to EU investment deal
- Draft text shows Beijing looked to withhold telecoms sector benefits to firms from countries with restrictions on Chinese telecoms companies
- The clause was struck-through by EU negotiators, with veteran officials pointing to a ‘classic’ Chinese negotiating move
At the eleventh hour of its painstakingly negotiated investment deal with the European Union, China tried to add a clause that would have frozen some of the benefits for EU states that restricted access for Huawei Technologies Co. and other Chinese telecoms firms, according documents reviewed by the South China Morning Post.
The insertion appeared in a draft negotiating text dated December 11, just weeks before the parties finalised their bilateral investment pact, but was struck-through by EU negotiators, suggesting it did not make the final agreement.
But a footnote below a passage offering European firms 50 per cent ownership rights on internet data centres – licenses needed to host cloud computing in China – reveals an aggressive negotiating position from China late in the day, one which sources say would have been totally unacceptable to the EU.
China reserves the right not to open this service to investors from countries that block or arbitrarily discriminate against Chinese telecommunications enterprises in law or policy.
The footnote, which is highlighted in yellow and struck-through with a blue line reads: “China reserves the right not to open this service to investors from countries that block or arbitrarily discriminate against Chinese telecommunications enterprises in law or policy.”