Investment agreement between European Union Analysts at the Eurasia Group of risk consultants said China is still possible, but both sides may wait to ratify the agreement as early as 2023.
The· EU and China agreed to agreement in December After 7 years of negotiations.But the tension between the two-seen Both sides impose sanctions on each other — European Parliament Freeze transactions Until Beijing lifts sanctions on EU politicians.
Despite the hiccups, Eurasia Group’s Chinese analyst Neil Thomas said the EU and China are likely to ratify an agreement in the long run, called a comprehensive investment agreement.
“This is because the deal is really giving Europe a biased interest, and it enjoys considerable approval and popularity among EU officials and the majority of members of the block. It will survive, “Thomas told CNBC.Squawbox Asia” on Tuesday.
Economy, including the EU and the United States, has long expressed concern about Beijing’s industrial practices that prevent foreign companies from competing fairly in China. Their complaints include China’s state-owned subsidies for state-owned enterprises and forced technology transfer from foreign companies to Chinese partners.
Thomas explained that the benefits of the EU-China investment agreement include better rules for improving market access for European companies in China, subsidies, state-owned enterprises and technology transfer.
However, ratification of a comprehensive investment agreement may not occur until 2023 at the earliest, Thomas said.
This is partly due to events such as the German Confederation elections in September and the President of France. Emmanuel MacronAnalysts said the spring 2022 re-election campaign could affect sentiment towards trading.
In addition, the president of China Xi Jinping Thomas said he didn’t want to be weakened by succumbing to the EU before the National Congress of the Chinese Communist Party in the fall of 2022. He explained that China’s sanctions on the EU are unlikely to recede, as Xi is expected to secure a third term as CCP general secretary.
Beyond the economic benefits of the investment agreement, China could lose its geopolitical foundation if the agreement is not finally ratified, Thomas said.
Analysts added that China’s claim on the global stage “created space for closer cooperation between the EU and the United States and created more political will in the EU to approach the United States.” It was.
President of the United States Joe Biden It has repeatedly expressed its intention to work with its European and Asia-Pacific allies to counter China’s growing global influence.
One of the first exhibits of such cooperation was seen in March in the United States, EU, United Kingdom and Canada. Sanctioned Chinese authorities Suspected human rights violations in Xinjiang Uygur Autonomous Region in northwestern China. Beijing retaliated with its own sanctions on four economies.
“China is not responding well,” Thomas said in response to statements from these meetings. He said Biden’s approach of prioritizing alliances and forming coalitions with China from a Beijing perspective could affect China’s economic development and its ability to access high tech.
EU-China investment transactions are still possible, but not before 2023: Analysts
Source link EU-China investment transactions are still possible, but not before 2023: Analysts