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The EU-China deal that gives Beijing too little to lose
The EU-China deal that gives Beijing too little to lose
The risk to the EU’s credibility seems too high for the deal to be worth it
World Economy News
25 Jan 2021
• 7 min read
Hello from Brussels. Following the EU’s investment deal with China — of which more below — it’s the US’s turn to provoke a cry of “whose side are you on?” from its allies and trading partners.
Joe Biden is set to sign a “buy American” order restricting some public procurement to US companies. (We’ll be looking out for a passive-aggressive tweet from the European Commission about working with the Biden administration on procurement alliances against China.) How far Biden’s plan represents economically and diplomatically disruptive protectionism depends on the detail: which sectors, which exemptions, what loopholes for foreign companies arising from US commitments in deals like the US-Mexico-Canada Agreement (USMCA) and the WTO government procurement agreement (GPA).