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European Union
ChinaPolitics

China sees leverage as Portugal takes presidency of European Council

  • Beijing is keen to get its investment pact with Brussels ratified and has urged Lisbon to help speed up the process
  • Analyst says Portugal’s clout in Europe might be limited but the country is seen as China-friendly

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An investment deal between China and the European Union still needs approval from the European Parliament. Photo: Shutterstock
Eduardo Baptista

Beijing’s drive to get a major investment deal ratified with Europe may get some additional help from its ties to Portugal, which on January 1 took on the six-month rotating presidency of the European Council.

The council includes leaders from the 27 members of the European Union and sets overall direction and common foreign policy. Despite each rotation lasting just six months, the presidency brings with it the responsibility to resolve deadlocks and lead member states towards a consensus on sensitive issues.
Portugal takes on the role after its immediate predecessor Germany on December 30 helped seal a controversial deal known as the EU-China Comprehensive Agreement on Investment, or CAI. The pact, which needs ratification by EU members, is touted by Brussels as one that will rebalance trade and investment between the EU and China “based on values and sustainable development principles”.
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The agreement “provides for an unprecedented level of market access for EU investors”, according to an EU statement that followed the signing. “The CAI will significantly improve the level playing field by laying down clear obligations on Chinese state-owned enterprises, prohibiting forced technology transfers and other distortive practices.”

02:27

US declares China has committed genocide in its treatment of Uygurs in Xinjiang

US declares China has committed genocide in its treatment of Uygurs in Xinjiang
The new Joe Biden administration in the US does not buy that line. It has expressed concerns the deal could serve to weaken the Atlantic alliance at a time when Washington has accused Beijing of predatory trade practices, intimidation of neighbouring states, and violation of human rights by interning ethnic Muslim minorities in labour camps in the Xinjiang region.
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China has rejected these allegations, and said the Xinjiang camps exist, but are for re-education in the face of religious extremism and terrorism.

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