London Daily

Focus on the big picture.
Saturday, Jul 12, 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
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
×