European Union has finalized its investment agreement with China

It is reported that the European Union (EU) has finalized its investment agreement with China, bypassing all objections and reluctance. The objections which have been sidelined include the condition of observance of labor rights in China.

The website POLITICO.EU has reported to European Union diplomats and officials that the two sides have reached an agreement on each other’s market access. It is expected that within the next day or two, the EU’s trade chief Valdis Dombrowskis and China’s trade chief Liu will sign the deal.

The agreement will be called the EU-China Comprehensive Investment Agreement. Under this, there will be a provision to provide full protection to European companies operating factories in China. Also, EU investors will get the right to buy Chinese companies. Chinese investors will also get the same rights in the case of European companies.

European Union has finalized its investment agreement with China
European Union has finalized its investment agreement with China

According to reports, a senior EU official briefed the EU ambassadors about the progress made in the talks last weekend. He said that China suddenly made attractive offers in the talks. But he cautioned that China did not accept any condition regarding the observance of labor rights.

Many European politicians and social activists have been critical of the EU’s attempts to negotiate an investment agreement with China. He says that while China has been accused of suppressing democracy in Hong Kong, using technology to monitor its population, oppressing Uighur Muslims in Xinjiang province, and violating labor rights, EU China Moving towards strengthening economic relations with.

But at the weekend’s meeting, ambassadors from all countries of Europe supported the EU’s efforts to finalize the agreement as soon as possible. However, he did say that the promise of observing labor rights should be taken from China.

Critics have also said that signing the deal on this occasion would mean that Europe would lose the opportunity to take strict steps against the human rights issue against China, along with the next Joe Biden administration of the US. Critics have said that the deal will have to be passed by the European Parliament. He has expressed the possibility that if the condition of labor rights is not included in the agreement, the European Parliament is likely to reject the agreement. Socialists, Democrats and Green members of parliament have said they will not vote in favor of a compromise without labor rights.

Some experts have expressed the opinion that signing the deal now would mean that the EU would move away from its goal of reducing its economic dependence on China. European companies are dependent on products made in China. Recently, there was a discussion that in the matter of supply chain, instead of depending on one country, they will try to spread it to different countries.

Socialist and Democrat members of the European Parliament say that this agreement will be the exact opposite of what they have experienced over the past year. According to him, at present, public opinion in Europe is against dependence on China. The dependence is to the extent that European countries were not even in a position to make masks when the Corona epidemic hit. According to him, instead of taking corrective steps in this direction, now the new agreement will further away from the goal of strategic autonomy of Europe.

But trade experts say that Europe is badly dependent on the Chinese market for its exports, hurt by the Corona epidemic. Without this, there is no possibility of economic development here. In the first three quarters of 2020, EU-China trade reached $ 420 billion. With this, China became Europe’s largest trading partner, leaving America behind. According to these experts, the EU is no longer able to impose more conditions on China.