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Updated December 31st, 2020 at 01:08 IST

Top Chinese officials on investment deal with EU

During a videoconference with European Commission President Ursula von der Leyen, EU Council President Charles Michel, German Chancellor Angela Merkel, and French President Emmanuel Macron, Xi said the agreement displayed China's commitment and confidence to opening-up at a higher level, Chinese state media CCTV reported.

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Top European Union officials and Chinese President Xi Jinping concluded a business investment deal Wednesday that will open big opportunities to European companies.

During a videoconference with European Commission President Ursula von der Leyen, EU Council President Charles Michel, German Chancellor Angela Merkel, and French President Emmanuel Macron, Xi said the agreement displayed China's commitment and confidence to opening-up at a higher level, Chinese state media CCTV reported.

Following the announcement of the agreement, China's Ministry of Commerce said the conclusion of the negotiation "sends a signal of the two-sides' commitments to uphold multilateralism, to maintain a rules-based open world economy, and to make the 'cake' of common interest bigger."

"This can actually bring benefits to all," said Gao Feng, a ministry spokesperson.

The videoconference launched a ratification process that will take several months as the text of the agreement still needs to be legally reviewed and translated before it is approved by the EU Council.

To enter into force, the agreement will then need to be ratified by the European Parliament, and the issue of human rights could be a sticking point.

According to the EU, the deal was brokered after China committed to pursue ratification of the International Labor Organization’s rules on forced labor.

Li Yongjie, an official at China's Ministry of Commerce, confirmed  "China and the EU have reiterated their obligations as ILO members to ratify ILO conventions."

The EU hopes the agreement, known as CAI, will help correct an imbalance in market access and create new investment opportunities for European companies in China by ensuring they can compete on an equal footing when operating in the country.

EU companies face competition from state-owned Chinese enterprises that may get government support and easier access to financing.

According to EU figures, China is now the bloc’s second-biggest trading partner behind the United States, and the EU is China’s biggest trading partner.

China and Europe trade on average over €1 billion a day.

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Published December 31st, 2020 at 01:08 IST

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