China and E.U. Leaders Strike Investment Deal, but Political Hurdles Await
The agreement, which would roll back restrictions on investment, faces some opposition in Europe and objections from the Biden camp.
Chancellor Angela Merkel of Germany pushed the accord because of its importance to German manufacturers.Credit.Pool photo by Sean Gallup
Chinese and European Union leaders agreed on Wednesday to make it easier for companies to operate on each other’s territory, a significant geopolitical victory for China when criticism of its human rights record and handling of the pandemic have left it increasingly isolated.
But political opposition in Europe and Washington could ultimately derail the landmark pact, illustrating the difficulties of dealing with an authoritarian superpower that is both an economic rival and a lucrative market.
China-E.U. Talks Hit Another Snag as Biden Camp Objects
Beijing and Brussels were on the brink of an agreement to roll back restrictions on investment. But the deal’s fate is uncertain amid growing animosity toward China and increasingly vocal opposition.
A worker on an assembly line at the Volkswagen electric vehicle plant in Shanghai. A pact would give companies like Daimler and Volkswagen better control over their operations in China.Credit.Aly Song/Reuters
China and the European Commission appeared close this week to announcing a landmark agreement that would make it easier for their companies to invest in each other’s economies. Then it hit another snag: A tweet by a top aide to Joseph R. Biden Jr. signaled that the president-elect was not happy about the deal.