Talks on China-EU investment deal will continue, EC president says

Delayed negotiations will ‘proactively proceed’, Ursula von der Leyen tells Chinese Premier Li Keqiang in phone call, Xinhua reports

But observers question whether Beijing is trying to take advantage of Covid-19 pandemic which has left Europe heavily reliant on China for medical supplies

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European Commission President Ursula von der Leyen spoke with Chinese Premier Li Keqiang in a phone call on Wednesday. Photo: Reuters

Published: 5:30pm, 19 Mar 2020Updated: 10:18am, 29 Dec 2020

The head of the European Union’s executive arm said talks with China on a major investment agreement would continue as the country steps up its medical support for the bloc amid the coronavirus pandemic.

European Commission President Ursula von der Leyen told Chinese Premier Li Keqiang that the EU would “proactively proceed” with the delayed negotiations on a single EU-China investment agreement in remarks released by Chinese state media but not the EU.

The statement, made during a phone call on Wednesday, gives China some relief amid its ongoing trade war with US President Donald Trump, who showed no signs of reducing tariffs on Chinese goods during his country’s presidential election cycle, making it difficult for the two countries to start an expected second round of trade talks.

The EU has blamed slow progress with its investment agreement on China’s lack of promises on areas such as market access and state-owned enterprises.

The EU sees the investment agreement as key to opening more sectors of the Chinese economy to European companies. Photo: Bloomberg

Observers questioned whether China would take advantage of the current situation as Europe, which now accounts for over 40 per cent of global coronavirus deaths, relies heavily on China for medical supplies.