After years of negotiations, the European Union is ready to finalize a huge investment deal with China, with expectations that it will be signed on Wednesday. The deal is meant to open up more direct investment from EU companies into China.
Under the deal, certain industries in China that need more funding and working relationships with experienced companies will be given priority access to EU conglomerates. The most significant of these is vehicles, as China tries to dramatically expand their electric car industry.
Some major European companies have experience in developing advanced batteries, and could partner up with Chinese firms to give them access to a level of expertise that would be needed to compete with US companies.
The EU had been limiting its companies’ access to China, arguing that they are not given a “level playing field.” China will be giving them improved access to real estate and financial services under the deal.
This deal has been a priority for China because of trade woes with the US. Deeper economic ties with the EU could put them in a better position, and may give the US an unwelcome surge in international competition.
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