London Daily

Focus on the big picture.
Friday, Aug 01, 2025

EU agrees ‘in principle’ to an investment agreement with China

EU agrees ‘in principle’ to an investment agreement with China

German Chancellor Angela Merkel and French President Emmanuel Macron are understood to be in agreement for the investment deal with China to go ahead, said a source.

The European Union has agreed “in principle” to an investment agreement with China, a high-level diplomatic source in Brussels told the South China Morning Post on Thursday, in what would be a big win for Beijing in the face of tattered relations with the US. The EU’s two most influential leaders, German Chancellor Angela Merkel and French President Emmanuel Macron, are understood to be in agreement for the deal to go ahead, a second source briefed on the negotiation said.

Germany, which currently holds the presidency of the EU Council, announced that the investment agreement with China would be discussed among the 27 countries’ representatives to the bloc on Friday.

The politically symbolic move between China and the EU comes just a month before Joe Biden will become the US president, dealing a blow to his hope of reviving the transatlantic partnership in a bid to take on China’s growing assertiveness.

The European Commission, the executive arm of the EU that is in charge of trade talks, has secured breakthroughs as China agrees to open up its market in multiple sectors for EU businesses, the sources said.

China is understood to have made concessions on sectors like financial services, manufacturing and real estate.

In return, China secured the EU’s agreement to open up the renewable energy sector for Chinese investment, a clause that has drawn opposition from Eastern European member states including Poland and Lithuania, which rely on US support to deter the threat from Russia, the source said.

“It is also debated whether it is the right moment to sign a deal with China, given the incoming Joe Biden presidency that will likely focus on a transatlantic alliance to counter the rise of China,” the source said.

“But overall, it is agreed that the EU negotiators have achieved what the EU has been calling on China to do for seven years. China did make major concessions,” the source added. “That’s why the European Commission made the political decision in principle to conclude the talks of the agreement with China.”

Earlier on Thursday, the Chinese ambassador to the EU, Zhang Ming, told the Financial Times that the talks “are now in the final stage”. Referring to President Xi Jinping, he said: “It’s quite unusual for a Chinese head of state to give such … attention to an agreement under negotiation.”

A spokesman for the European Commission said: “The EU-China investment talks are intensive. Progress has been achieved in a number of areas. There are still some important outstanding matters and talks are continuing this week.

“The EU remains committed to the end of year deadline for conclusion of the negotiations, provided we have a deal worth having. We will not put speed over substance.”

Reinhard Bütikofer, who chairs the European Parliament’s China delegation, said of the possibility of an EU-China deal on Twitter: “It would be an interesting development, if EU would ignore concerns about forced labour in China and rush to conclude with China just before the Biden transition opens opportunities for better and stronger transatlantic cooperation on China.”

The diplomatic source, however, said that the deal with China would not affect the EU’s intention to build up a closer partnership with the US.

There are also suggestions that the EU-China investment agreement can be “fast-tracked” and will not need to be approved individually by the national parliaments of the member states, as is the practice for trade deals.

Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
×