The Chinese Premier Xi Jinping is now confirmed hold a Summit with European Union (EU) counterparts on September 14, 2020 to discuss a trade pact with EU.
The Summit, which will be organised through video conferencing, will be attended by all the member states of the EU, including President of France – Emmanuel Macron, Chancellor of Germany – Angela Merkel, President of European Council (EC) – Charles Michel and President of European Commission – Ursula von der Leyen.
Germany, which presently holds the EU Presidency, had wished Xi to be present for a physical meeting in the German city of Leipzig to foster longer-term EU-China relations but due to Coronavirus (COVID-19), the plan got cancelled.
The EU would be discussing a potential investment agreement that seeks to protect European business interests in the world’s second-biggest economy. They would aim to finalize the agreement this year. The EU will not agree to any deal unless Xi assures them of greater market share or creates a level playing field between European and Chinese companies in China. EU negotiators have complained about a lack of Chinese commitment to meet their demands in full.
During the summit, EU will also touch upon the Hong Kong National Security Law. Another issue Merkel could focus on is climate change. EU policymakers believe China has failed to live up to expectations to do more as the world’s biggest carbon dioxide polluter. The bloc itself is trying to ensure that post-Covid-19 economic stimulus plans for its member states go hand in hand with sustainable and climate-conscious developments.
To be held in the wake of upcoming Presidential polls in the United States (U.S.) and the soaring ties with the U.S. and India, China will try to woo the EU leaders. What is important is that the Democratic Party candidate – Joe Biden, who is contesting against the U.S. President – Trump is focussed towards developing close ties with European nations. However, the EU wants to distance itself from the U.S. – China politics. The only thing that needs to be watched is that EU has already agreed with Trump to work closely with them on issues regarding China.
Earlier in July 2020, the EU and China held their 8th High-Level Trade and Economic Dialogue (HED). During the meeting, EU said that EU-China bilateral and trade relations must be based on the key principles of reciprocity and level-playing field based on clear and predictable rules. EU urged China to engage in serious reform of the multilateral system and its rulebook and to remove the existing barriers impeding access to the Chinese market of EU exporters of goods and services as well as of European investors. Such an approach by China would show a level of responsibility which reflects its economic and trade importance.
On market access, the EU reiterated its request for improvements of China’s offer in the telecommunication and computer sectors, health, biotechnology and new energy vehicles. EU also reminded China to authorise Member States’ exports of agricultural products currently awaiting export authorisation, as it is the case in the beef and poultry sector.
