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#EUChina - ‘China has to convince us that it is worth having an investment agreement’ #EU2020DE

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Today’s (14 September) EU-China summit took place at a time when US-China tensions are escalating, worrying reports of human rights violations have emerged, relations have been strained on cybersecurity, and when both sides are struggling with the enormous challenges of COVID-19 and restoring economic growth in the wake of the pandemic.

‘A player, not a playing field’

President of the European Council Charles Michel said: “Europe needs to be a player, not a playing field” and asserted that today’s meeting represented another step forward in forging a more balanced relationship with China. He said that Europe wanted a relationship with China that is based on reciprocity, responsibility, and basic fairness.

Michel said that on average the EU traded over 1 billion euros a day with China, but he said that Europe had to insist on more reciprocity and a level playing field.

‘China has to convince us that it is worth having an investment agreement’

As widely anticipated, the summit failed to reach an ambitious EU-China Comprehensive Investment Agreement (CAI). President of the European Commission, Ursula von der Leyen said that Europe needed to see greater progress in key areas: state-owned enterprises; forced technology transfer; transparency on subsidies; market access, and sustainable development.

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In the question and answer session, Chancellor Merkel added: “Over the past 15 years, I would say that economically, China has become significantly stronger. That means that there is more need for reciprocity and for a level playing field. That may not have been the case 15 years ago, when China was closer to being a country in the throes of development. In many high tech areas it is a clear competitor. In other words, rules-based multilateralism must be complied with under the WTO agreement.” Merkel gave the example of public procurement, where she said that China had been under lengthy negotiations with the WTO but there had been no result.

The two sides reaffirmed their objective of closing the remaining gaps before the end of the year. The EU side emphasized that high-level political engagement would be required within the Chinese system to achieve a meaningful agreement.

‘China needs similar levels of ambition to Europe’

In her speech as Council President Chancellor Merkel chose to focus on climate. She said that the EU and China were now in dialogue to talk about the Glasgow climate conference at the end of the year where national goals will be reviewed. The European Union will be stepping up its 2030 goal and aims at becoming carbon neutral by 2050, the EU discussed China setting similar leadership in setting ambitious goals, especially given its continued heavy dependence on coal-fired power stations. Merkel said that she would like to work with China on its emission trading scheme which will be the largest in the world. The biodiversity conference for 2021 was also discussed.

Hong Kong and human rights

Michel said that the recent national security law for Hong Kong continues to raise grave concerns and called for democratic voices to be heard, rights protected, and autonomy preserved.

The EU also reiterated its concerns over China’s treatment of minorities in Xinjiang and Tibet, and the treatment of human rights defenders and journalists requesting access for independent observers to Xinjiang and the release of Swedish citizen Gui Minhai and two Canadian citizens who have been arbitrarily detained. There will be a human rights dialogue in Beijing later this year.

In addition to human rights concerns, the EU asked China to refrain from unilateral actions in the South China Sea, to respect international law, and avoid escalations.

In a brief press written press statement President Xi Jinping said the European Union should adhere to peaceful coexistence, openness and cooperation, multilateralism, as well as dialogue and consultation for the sound and stable development of their relations.

He noted that the COVID-19 pandemic was accelerating changes and that mankind was standing at a new crossroads. Xi called on China and the EU to unswervingly promote the sound and stable development of the China-EU comprehensive strategic partnership.

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