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news China-EU relations face uncertain future despite investment deal © AFP The two sides agreed an investment deal late last year. Photo: AFP Both China and the EU have hailed an investment agreement between the two sides as a breakthrough, but the course of future relations remains uncertain with many potential pitfalls ahead. European countries are still prepared to work with the United States to counter China and events such as the mass arrest of opposition politicians in Hong Kong are likely to cause further criticism of Beijing. The investment deal is seen as a sign that the two sides can work together despite many grievances over their economic relations and pressure from the US, but observers cautioned that further problems lay ahead, while German Chancellor Angela Merkel - a key force in backing the deal - is planning to step down later this year.

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