China-EU relations: Xi, Macron phone call ‘will help ease friction’ that stalled investment deal

The two leaders made special mention of bilateral trade in areas such as agriculture, finance, aviation and commerce, as well as cooperation in climate change

Analysts say the phone call could lay the groundwork for ‘high-level consensus’ on the China-EU bilateral investment agreement that stalled amid sanctions

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French President Emmanuel Macron meets Chinese President Xi Jinping at a signing ceremony inside the Great Hall of the People in Beijing, China, in 2019. Photo: Reuters

Published: 11:30pm, 17 Feb 2022Updated: 12:56am, 18 Feb 2022

A phone call this week between presidents Xi Jinping and Emmanuel Macron could signal more constructive discussions on trade between China and the European Union (EU), analysts said, at a time when relations between the two economies are near all time lows.

In a conversation on Wednesday, the two leaders made special mention of bilateral trade in areas such as agriculture, finance, aviation and commerce, as well as cooperation on climate change.

Wang Huiyao, founder and president of the Centre for China and Globalisation in Beijing, said the call “will help ease friction between China and the EU”.

“I think it will be a huge signal of high-level consensus for both China and the EU … to further promote the entry into force of the China-EU bilateral investment agreement.”

Last year, the European Parliament halted ratification of the investment deal for as long as Chinese sanctions on EU individuals and institutions remained in place.