Bloomberg News, Bloomberg News Ursula von der Leyen Photographer: Thierry Monasse/Bloomberg , Bloomberg
(Bloomberg) A major investment deal reached in December between the European Union and China â after seven years of painful negotiations â may end up being the high-water mark for ties that are quickly deteriorating again.
Since then, the EUâs executive branch and Germany have each formulated legislation that would make life harder for Chinese entities to invest, while joining the U.S. in swapping tit-for-tat sanctions with Beijing. Italyâs government has turned from an enthusiastic backer of President Xi Jinpingâs Belt and Road Initiative to blocking planned acquisitions by Chinese companies. And in France, Chinaâs ambassador didnât even show up when summoned in March, citing âagenda reasons.â
Europe recalibrates on China as Merkel s term nears end and trans-Atlantic tensions ease Sorry, but your browser needs Javascript to use this site. If you re not sure how to activate it, please refer to this site: https://www.enable-javascript.com/
German Chancellor Angela Merkel and Joe Biden, then U.S. vice president, before talks in Berlin in February 2013. | REUTERS
Bloomberg May 4, 2021
A major investment deal reached in December between the European Union and China, after seven years of painful negotiations, may end up being the high-water mark for ties that are now quickly deteriorating again.
Since then, the EU’s executive branch and Germany have each formulated legislation that would make life harder for Chinese entities to invest, while joining the U.S. in swapping tit-for-tat sanctions with Beijing.
China tensions spill over as Europe moves towards Bidenâs side 6 min. today at 07:17
Economic ties remain paramount since China is the EUâs biggest trading partner Economic ties remain paramount since China is the EUâs biggest trading partner US President Joe Biden Photo credit: AFP
A major investment deal reached in December between the European Union and China â after seven years of painful negotiations â may end up being the high-water mark for ties that are quickly deteriorating again.
Since then, the EUâs executive branch and Germany have each formulated legislation that would make life harder for Chinese entities to invest, while joining the U.S. in swapping tit-for-tat sanctions with Beijing. Italyâs government has turned from an enthusiastic backer of President Xi Jinpingâs Belt and Road Initiative to blocking planned acquisitions by Chinese companies. And in France, Chinaâs ambassador didnâ�
et the talk in Berlin is that optimism around the relationship is gone,
and one Chinese official characterized ties with Europe as on a downward trajectory. Whether the Greens come to power in Germany or not, EU-China relations are at a critical juncture, said the official, asking not to be identified speaking about strategic matters. -Bloomberg
The report suggests that Europe is moving closer to the views of President Joe Biden s administration in its standoff with China while US Secretary of State Antony Blinken conducts discussions with his G7 counterparts in London, a Europe more aligned with Washington would signal some repair to the damage done to transatlantic ties by the Trump administration, with implications for trade, tariffs and access to technology.
Aerial photo taken on Feb. 24, 2020 shows the Haizhu wetland and the Canton Tower in the distance in Guangzhou, south China s Guangdong Province. (Photo by Xie Huiqiang/Xinhua)
Global investors enthusiasm for the Chinese market seems unstoppable despite the COVID-19 pandemic, as the latest data showed that China successfully navigated the economic fallout in the turbulent year and became the top investment destination worldwide.
In 2020, global foreign direct investment (FDI) flows plummeted by 38 percent from a year before to 846 billion U.S. dollars, the lowest level since 2005, the Organization for Economic Cooperation and Development (OECD) said.
The global FDI flows represented only 1 percent of world GDP, their lowest level since 1999, the OECD said.